User Guide. MYOB Payroll 2013

Transcription

1 User Guide MYOB Payroll 2013 PAY12001/v2013

2 MYOB NZ Limited Copyright MYOB Technology Pty Ltd All rights reserved. Content may not be copied, altered, edited, disposed of or distributed without the prior written consent of MYOB. Trademarks MYOB, AccountantConnect, AccountantsEnterprise, AccountantsOffice, AccountEdge, AccountRight, AccountRight Basics, AccountRight Standard, AccountRight Plus, AccountRight Premier, AccountRight Enterprise, Accounting, Accounting Plus, Atlas by MYOB, MYOB BusinessBasics, BankConnect, MYOB CashBasics, ClientConnect, ClientConnect Plus, Exo, FirstEdge, LiveAccounts, Love Your Work, Mind Your Own Business, MYOB - Making Business Life Easier, MYOB Atlas, MYOB ClientConnect, MYOB Enterprise, MYOB Exo, MYOB M-Powered, MYOB M-Power, M-Powered Services, M-Powered Bank Statements, M-Powered Invoices, M-Powered MoneyController, M-Powered Payments, M-Powered Superannuation, ODBC DeveloperPack, ODBC Direct, PowerPay, Premier, Premier Enterprise, RetailBasics, RetailHospitality, RetailManager, RetailManager Enterprise, RetailManager Professional, RetailManager Standard, RetailReady, Smarter Connections are registered trademarks or trademarks of MYOB Technology Pty Ltd and their use is prohibited without prior consent. Ceedata, Solution 6 MAS and Xlon are registered trademarks or trademarks of Solution 6 Holdings Limited, a member of the MYOB group. Adobe, Acrobat, Acrobat Reader, Adobe Reader, PDF, and PostScript are trademarks or registered trademarks of Adobe Systems Incorporated. AddressBook, Apple, imac, AirPort, ical, Macintosh, and QuickTime and the QuickTime logo are registered trademarks of Apple Inc. MobileMe SM is a service mark of Apple Inc. Mac and the Mac logo are trademarks of Apple Inc., used under licence. Brio Intelligence and Hyperion Intelligence are trademarks or registered trademarks of Hyperion Solutions Corporation, Ctree use by permission from Faircom, Dapper used under licence with Apache Software, NiXPS used under licence, WinForms control set and DevExpress controls used under licence from Developer Express Inc. Crystal Reports is a registered trademark of Crystal Decisions, Inc. in the United States or other countries. FlexNet Connect is a registered trademark of Flexera Software Inc. Google Maps card links included with permission. MasterCard is a registered trademark of MasterCard International Inc, xerces is licenced under Apache Software. Microsoft, Access, Azure, Excel, Internet Explorer,.Net Framework,Office, Outlook, Smart Tags, Ribbon Control Library, SQL Azure, SQL CE, Windows, Word and WFPToolkit, are registered trademarks or trademarks of Microsoft Corporation in the United States or other countries. DotNetZip is licensed under the Microsoft Public Licence. Fluent.Net is licensed under the Apache 2.0 Licence. N-Log is licensed under the BSD Licence. LLBLGen is used under licence from Solutions Design bv. New Relic is a registered trademark of New Relic, Inc. JSon.Net is licensed under the MIT licence. Quicken and QuickBooks are registered trademarks of Intuit Inc. SM2DGraphView Copyright Snowmint Creative Solutions LLC snowmintcs.com. VISA is a registered trademark of Visa International Service Association. RightNow CX is a registered trademark of RightNow Technologies Inc. Sentry Spelling Checker Engine for Windows, copyright Wintertree Software Inc. BankLink is a trademark of Media Transfer Services Inc. Other products mentioned may be service marks, trademarks or registered trademarks of their respective owners. The MYOB Payroll User Guide is intended for use with MYOB Payroll

3 MYOB Software Licence Agreement IMPORTANT-READ THIS CAREFULLY BEFORE USE. This is the Software Licence Agreement (Agreement). As you have purchased the Product (consisting of the User Documentation and the installation CD or other media containing the Software), following notification of the Licence you are now legally bound by its conditions. HOWEVER, if the Licence Agreement contains anything of which you were not aware prior to purchasing the Product or do not agree to be bound by, DO NOT INSTALL THE SOFTWARE but return the Product to the reseller in its entirety and a full refund of the purchase price will be made. By installing the Software and keeping the Product you are confirming that you have purchased the Product subject to this Licence and are bound by its provisions. TRIAL VERSION SOFTWARE LIMITATION. If you use this Software on a trial basis prior to purchase, then additional restrictions govern its use. The Trial Version is intended to be used only for evaluation purposes and whilst you may create your own company data files ("Company Files") you will have access to your Company Files only for a period of 90 days from the date of creation of each Company File. Thereafter, you will be able to access the Company Files created by you only upon your purchase of the full version of the Software product licence. Upon your purchase of the full version of the Software product licence, the restrictions in this paragraph (Trial Version Software Limitation) shall no longer apply, but you acknowledge that your use of the full version of the Software product licence will be conditioned on your agreeing to the terms of the Software Licence Agreement accompanying the full version of the Software product licence. 1 Scope of Licence MYOB Technology Pty Ltd (the Publisher), through its local publishers and distribution agents, hereby grants to you, the original purchaser, a paid-up, personal, non-exclusive and non-transferable Licence to use the Software and the User Documentation only in the region, territory or country specified on the packaging, or in New Zealand, subject to the terms and conditions of this Agreement. a Activation of Company Files You must register the Product and activate the company files you create or upgrade with the Software. You are entitled to activate one (1) new or upgraded company file. If you are upgrading from a previous version of MYOB Payroll you are entitled to activate the same number of files as your previous version. If required, you can obtain additional activations by contacting MYOB New Zealand Ltd. i) New Company Files You may only access each new company file you create for 90 days without registering the Product and activating the company file. After 90 days each new company file will become read-only until you activate it. ii) Upgraded Company Files You may only access each company file you upgrade from MYOB Payroll 2007 (or earlier) for 45 days without activating the company file. After 45 days each upgraded company file will become read-only until you activate it. Note that for upgrading from MYOB Payroll 2007 your company file needs to be confirmed. iii) Licensed employee numbers You are entitled to Create a maximum of 20 employee records in your company file. If you have upgraded from MYOB Payroll 2007 (or earlier) or have purchased additional employee licences you can create employees based on the licence information held by MYOB. b Number of Users If you have purchased: i) a Single User Software Licence then you may use the Software on only one computer that you own or operate at a single physical location in respect of company files you have activated. You may transfer the Software from one such computer to another that you own or operate provided that you do not use or permit the usage of the Software on more than one computer or computer terminal at a time. In 3

4 the event of an upgrade or Product exchange the Licence hereby granted shall automatically transfer to the new version or Products. ii) a Multi-User Software Licence then you may use the Software on only one computer network that you own or operate at a single physical location and only then in respect of company files created and activated by you or by another licensed user. You may transfer the Software from one computer to another that you own or operate on this network provided that you do not use or permit the usage of the Software on more than the licensed number of computers or computer terminals at a time, nor permit the usage of the Software on more than one network at any one time, nor permit the Software to be used in respect of company files that you have not activated or have not been created by you or by another licensed user. c Updates and Upgrades In the event of an upgrade, update or product exchange, the Licence hereby granted shall automatically transfer to the new version or product. All rights in respect of the original Product shall lapse and no further use of these shall be permitted. d Portable or Home Computer and Archive Copies You may make a copy of the Software and install it on either a portable computer or a computer located in your home provided that the copy is for your own exclusive use and is not operated simultaneously with the original of the Software. Otherwise you may not copy or duplicate the Software, except as necessary solely for archival purposes, Software error verification, or to replace defective storage media, provided you keep the original and the copies. You may not alter, decompile or disassemble the Software. You may make copies of the User Documentation up to but not exceeding the number of multi-user Licences you have purchased. e Transfers You may not sub-license, lease, rent or lend the Software or the User Documentation or otherwise transfer any of your rights under this Agreement. Subject to the prior written consent of the Publisher and the agreement of the transferee to be bound by the terms of this Agreement, you may permanently transfer the Software (together with any backup copies you have made) and the User Documentation. However, you may not retain any copies of either the Software or the User Documentation. f Term The Licence granted in this Agreement is effective until terminated. You may terminate it at any time by destroying the Software and User Documentation, together with all copies, or by returning them to the Publisher. If you fail to meet the ongoing obligations accepted by you at the 4 time of registration (if applicable) or if you fail to comply with any term or condition of this Agreement, this Licence will terminate and, upon any such termination, you agree to destroy the Software and User Documentation, together with all copies, or to return them to the Publisher. Termination of this Licence shall be in addition to and not in lieu of any other remedies available to the Publisher. g Protection and Security You agree to use your best endeavours and to take all reasonable steps to safeguard the Software to ensure that no unauthorised person has access to the Product and that there is no unauthorised copying or distribution of the Software or User Documentation. 2 Limited Warranty & Disclaimer The Publisher warrants that the media on which the Software is recorded and the User Documentation provided with it are free from defects in materials and workmanship under normal use for a period of 90 days from the date of your original purchase. Except for the limited warranty described above, the Software is sold 'as is', and you are assuming the entire risk as to its quality and performance. It is your responsibility to verify the results obtained from the use of the Software. If during the 90-day limited warranty period, you discover physical defects in the media on which the Software was recorded or in the User Documentation, the Publisher will replace them at no charge to you, provided you return the item to be replaced with proof of purchase to the Publisher. THIS IS YOUR SOLE REMEDY. IN NO EVENT WILL THE PUBLISHER BE LIABLE TO ANY PERSON FOR ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR SIMILAR DAMAGES, EVEN IF THE PUBLISHER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 4

5 Some jurisdictions do not allow the exclusion or limitation of implied warranties or of liability for incidental or consequential damages, so the above limitations or exclusions may not apply to you. This warranty gives you specific legal rights and you may also have other rights that vary from state to state. In the event that any of the above limitations or exclusions are held to be unenforceable, the Publisher's total liability shall not exceed the amount of the Licence fee you paid. 3 Entire Agreement This Licence constitutes the entire agreement between the Publisher and the Licensee and any prior representations, statement or undertaking howsoever made are expressly cancelled. No amendment or modification to this Licence shall be valid unless it shall be in writing and signed by an authorised representative of the Publisher. 5

6 Contents 1 Your first day...9 Overview of your first day...9 Learning Tools...10 Using MYOB Payroll for the first time...11 Explore the sample payroll...12 Accessing functions in MYOB Payroll...13 Creating a payroll file...16 Payroll options...20 Opening an existing payroll file...25 Exiting MYOB Payroll...25 Your MYOB Payroll data file...26 Integrating with other MYOB software Maintenance...29 Overview of maintenance...29 Maintaining departments and costcentres...30 Maintaining pay codes...32 Editing pay codes...34 Maintaining employees...41 Processing employee leave...55 Maintaining Accumulators Preparing pays...65 Overview...65 Importing timesheets...66 Entering timesheets...67 Print timesheets...68 Calculate default pays...69 Enter pays...70 Print Pay Slips Pay Slips Processing pays...77 Overview...77 Print the pay summary report...78 Print payment schedules...79 Backup...79 Finalise the pays...80 Change the PAYE period

7 5 Reporting...83 Payroll reports Printing options Available reports Additional report information Exporting pay history information Other functions...93 End of year processing Creating accounting journals Backing up and restoring your data Repairing the payroll file Managing passwords Entering pay history Purge old data Consolidate payrolls PAYE calculator Glossary Index

8 1 Your first day Learn the basics of MYOB Payroll using windows, icons, and fields, and setting up and working with your company s payroll file. Overview of your first day Your first day with MYOB Payroll will be spent learning about the program, installing it on your computer, and setting up your company details so you can start working on your own payroll file. In addition to this User Guide, you should have received the Getting Started guide. This guide should be your first point of reference as it contains the following information: How to register MYOB Payroll System requirements How to install MYOB Payroll How to enter historical payroll information How to get Technical Support, and what the options are Information about other MYOB resources that could make a difference in your business. After you have read Getting Started, you are ready to begin. Your first day topics Know what help is available, see Learning Tools on page 10 Learn how to start your software, Starting MYOB Payroll on page 11 Experiment without affecting your payroll information, see Explore the sample payroll on page 12 Find your way around MYOB Payroll, see Accessing functions in MYOB Payroll on page 13 Convert your existing payroll system to MYOB Payroll, see Creating a payroll file for an existing payroll on page 16 Get started straight away with a new payroll, see Creating a new payroll on page 19 Go back in to a payroll file you have created, see Opening an existing payroll file on page 25. 9

9 Learning Tools With MYOB Payroll, you receive a range of learning tools that have been designed to help answer your questions about MYOB Payroll and to help you get the most from your software. These tools include a comprehensive online help and an electronic user guide. We encourage you to take the time to become familiar with these tools, as they will help you take full advantage of available features and functions. The MYOB Payroll user guide has been provided as a PDF (on CD) to give you the flexibility to print it out, or just sections of it, as you require. When you are using MYOB Payroll, pressing F1 opens the online help to give you immediate assistance and information about the window you are in and the task you want to perform. User Guide The MYOB Payroll User Guide contains detailed information on how to prepare to use MYOB Payroll, and setup instructions to get you up and running with MYOB Payroll as quickly as possible. Illustrations of the MYOB Payroll windows, and procedures for all the tasks you can perform, are included in this manual. We suggest you keep it handy as you begin using MYOB Payroll in your business. If you have any feedback on this User Guide or the Online Help, please let us know. Feel free to write to us on how we can improve our online and printed documentation. Online help MYOB Payroll comes with a comprehensive help system that you can use as a reference. To access the Online Help, choose Contents from the Help menu or press F1 in any window in MYOB Payroll. Help menu links The Help menu in MYOB Payroll can link you to useful information on the web, relating to managing your payroll. Connect to the Internet and choose from any of the links available on the MYOB on the Web and Useful Links sub-menus. MYOB Training Services MYOB can accommodate all of your training requirements, whether through on-site training or by attendance at one of our regular scheduled training courses. For more information on available training courses and tailored training options visit and proceed to the training section or [email protected]. Knowledge base A comprehensive online knowledge base is available and includes important information, known issues and common problems. This website is being updated on a regular basis, therefore, we encourage you to use this online knowledge base before ing or calling our Technical Support team. To view the online knowledge base, visit the MYOB site at myob.co.nz/supportnotes. 10 CHAPTER 1 YOUR FIRST DAY

10 MYOB Community Forum The MYOB Community Forum is where users of MYOB software and services can ask questions, share information and knowledge, and learn from each other. Visit community.myob.com. IRD Assistance The IRD have provided helpful information on a wide variety of payroll issues. This information can be accessed through their website at Other sources of legislative information for employers and payroll staff include: NZ Legislation (including the Holidays Act 2003) can be browsed for free at: Your local Employers Chamber of Commerce may be available for help on specific personnel issues. Using MYOB Payroll for the first time You can experiment with MYOB Payroll to learn about how it works before setting up your own payroll details. The following topics are discussed in this chapter. Starting MYOB Payroll, below Explore the sample payroll, page 12 Setting up your own payroll; if you have an existing payroll, see Creating a payroll file for an existing payroll, page 16 or if creating an empty payroll, see Creating a new payroll, page 19. For information on setting up or maintaining additional payroll details, see Overview of maintenance on page 29. Starting MYOB Payroll You can start MYOB Payroll either from the Windows desktop or from the Start menu. 1 Click the MYOB Payroll icon on the Windows desktop. or Click the Windows Start button, choose Programs, and double-click the MYOB Payroll icon in the folder that was created when you installed MYOB Payroll. If you chose all the default options during the installation process, the MYOB Payroll program was installed in the MYOB Payroll program group. USING MYOB PAYROLL FOR THE FIRST TIME 11

11 After a few moments, MYOB Payroll starts and the Welcome to MYOB Payroll window appears. 2 Continue with one of these topics: If you have already created a payroll file and want to use it, see Opening an existing payroll file on page 25. If you want to get started right away, see Creating a payroll file on page 16. To become familiar with your software before setting up your own payroll, see Explore the sample payroll below. - Explore the sample payroll A great way to learn how to use MYOB Payroll is to see and play with actual data that has been entered into the MYOB Payroll system. By doing so, you can learn how your data should be entered. We have created a sample company, Clearwater Ltd, for this specific purpose. Using Clearwater s payroll file, you can experiment freely with features without affecting your company s information. We recommend you spend some time with Clearwater s data to familiarise yourself with the way your software works. To explore the Clearwater payroll file 1 Click Explore the sample Payroll in the Welcome to MYOB Payroll window. The MYOB Payroll command centre window appears. This window always appears when MYOB Payroll is running. Notice that the name of the sample company, Clearwater Ltd, appears in the top left corner of the window. NOTE : The Clearwater Ltd payroll file is only for learning purposes Clearwater payroll file. Do not enter your own financial information into the 2 Now that Clearwater is open, feel free to browse MYOB Payroll and explore the sample company. For information on getting around, see Accessing functions in MYOB Payroll on page CHAPTER 1 YOUR FIRST DAY

12 Accessing functions in MYOB Payroll You can access MYOB Payroll functions using one of the following navigation methods. Command centres, below Menus, page 14 Hot keys, page 14 Types of fields and buttons in MYOB Payroll, page 15 Learning Tools, page 10. Command centres Command centres enable you to quickly and easily access the required functions of MYOB Payroll using icons, similar to the way you may use tool bars in other Windows systems. There are three command centres, which are based on the major functions that you will perform in MYOB Payroll. They are: Maintenance command centre, used to record and edit employee, pay code and department information. Prepare Pays command centre, used to add timesheets, enter current pay run information and print pay slips. Process Pays command centre, used to finalise your pay run, create necessary ir-filing and direct credit files and update the PAYE period.. The command centres contain a row of icons in the top half of the window, which represent the three areas of MYOB Payroll. Each time you view the central location for all command centres, one of the icons is highlighted, and a flowchart of tasks is displayed below the row of icons. The highlighted icon is the current command centre, and the flowchart displayed below the row of icons contains the major functions associated with that command centre. For example, when the Prepare Pays function is highlighted, functions such as Enter Timesheets and Calculate Default Pays typical tasks you d complete with preparing pays are displayed in the flowchart. To display a command centre, click once on the icon of the command centre you want to see. ACCESSING FUNCTIONS IN MYOB PAYROLL 13

13 Tasks are accessed from command centres simply by clicking once on the function icon. When you select a function, a window will appear where you can make the necessary entries to perform the function. Menus The menu allows you to access all functions from one location, including some that are not available from command centres, such as Options. The menus are ordered in a hierarchical structure. Use the standard Windows method to access a function from a menu. The arrow next to a menu item indicate that there are additional sub-menus for this item. Hot keys You can access some functions using shortcut keys. These keys are listed below: Function key F1 F4 F6 F7 F8 F9 Ctrl+O Ctrl+N Ctrl+P Ctrl+D Action Online Help Add record Insert current date Delete after cursor Delete record Lookup Open a payroll Create a new payroll Print Print Direct Debit fax (for sending to the bank) 14 CHAPTER 1 YOUR FIRST DAY

14 Types of fields and buttons in MYOB Payroll You will find the following types of fields and buttons used in MYOB Payroll. Field type Example Description Data entry Button Radio buttons Checkboxes Tabs Ellipsis button Data entry fields allow you to enter information in your payroll file. Buttons come in a few different styles in MYOB Payroll. Generally, the purpose of buttons is to perform an action or step, such as opening a window. Radio buttons allow you to make a selection from a number of choices. Radio buttons are selected by clicking the circle next to the text that accompanies it. Checkboxes allow you to activate or deactivate a particular MYOB Payroll function. Checkboxes are selected by clicking the square next to the text. Tabs allow you to switch between views in a window, such as Personal Details in the Maintain Employees window. To select a new view, simply click the tab required. Click the ellipsis button [...] to access a related tool, such as a calculator, or to open a window with more information about the item. List windows In addition to field and buttons, you ll find List windows. These let you enter data by clicking an item presented in a scrolling list. For example, if you are setting up pay defaults for an employee, you can press F4 to add a new pay code, as shown in the following illustration. List windows differ depending upon the window in which they appear. ACCESSING FUNCTIONS IN MYOB PAYROLL 15

15 Creating a payroll file There are two ways you can create a payroll file. You can: convert your existing payroll system to MYOB Payroll, see Creating a payroll file for an existing payroll below set up a new payroll with no prior payroll information, see Creating a new payroll on page 19. Below is a list of information that is generally required to set up your payroll. Employee list Pay codes (the components that make up an employee s pay, such as ordinary time, overtime, leave, tax, and so on) Departments Cost centres Leave details Leave anniversaries PAYE settings Direct credit files System preferences Creating a payroll file for an existing payroll MYOB Payroll allows you to enter historical information from your previous payroll system, bringing you up-to-date and ready to process your next pay run. Entering historical information is optional Pay history is used for the calculation of annual leave rates. If you don t enter historical information, you will need to manually override the gross earnings for the last 12 months each time an employee takes leave. Note that if you need a full record of historical information, you will need to re-enter pays using the pay-by-pay method. This involves processing each pay run separately from the start of the tax year. Annual Leave anniversary Before you start using MYOB Payroll decide if you will use a common anniversary (used when a firm has a compulsory closedown period such as two weeks over Christmas) or individual anniversaries (based on the employee s start date). 16 CHAPTER 1 YOUR FIRST DAY

16 To create a payroll file for an existing payroll 1 Start MYOB Payroll and click Create a new Payroll from the welcome window that appears. The New Payroll window appears. 2 Enter the name of the payroll. 3 Check that the tax year end date is correct and set the current month to the month prior to the first month you are planning on entering pay history for (for example, 12 months ago; you may need to also change Tax Year End to the relevant year) or processing live pays. 4 Click OK. The Payroll Options window appears. 5 Enter your payroll settings. If you are using a common anniversary set this under the Leave tab. Note that this information can be changed after the payroll has been created (go to the Tools menu and choose Options). 6 Click OK. The Payroll Command Centre now appears. 7 [Optional] Set up Departments/Cost Centre. Some businesses use separate departments to track wages expenses and other employee information. a Go to the Maintenance command centre and click Maintain Departments. b Click New in the window that appears. The New Department/Cost Centre window appears. c Enter the details of your department and then click OK. d Repeat from step a above for each department. e Click Close. NOTE : General Ledger codes A message will appear to let you know that general ledger codes haven t been assigned to your departments. Return to this window and enter the General Ledger codes after setting up your accounting integration. For information about integrating with your accounting software, see Integrating with other MYOB software on page 26. CREATING A PAYROLL FILE 17

17 8 Set up Employees. a Go to the Maintenance command centre and click Maintain Employees. b Click New. The New Employee window appears. c Enter a code in the Employee Code field. Each employee must have a unique code (which can be numbers or letters). We recommend the first four or five letters of the surname followed by the initials. This ensures that reports will be printed in alphabetical order for surnames. Numeric codes can be used; however, you must include leading zeros to ensure the sort order is correct (for example, 001, 002, and so on). The Copy the following information option is useful when adding employees who share similar information, and saves you from having to re-enter information. Click in the field and press F9. In the list that appears, select the employee you want to copy details from and click OK. Once the employee is added, you can customise employee details (such as assigning them a department and adding a start date). d Repeat from step a above for each employee. e Click Close. 9 If you want to enter pay history, you can enter it now by processing the historical pay runs (refer to the F1 help or User Guide for more information on entering pays). When prompted to update an employee s leave details, make sure you do so. If you prefer to keep details of the historical and current pays separate, use the YTD... pay codes. 10 Enter Leave details. Before you enter these details, you will need leave information from your previous payroll system. a Go to the Maintenance command centre and click Maintain Employees. b Click the Leave Details tab and then click Annual Leave & Holiday Pay. c Enter the normal days per week and normal hours per day worked. Your normal hours per week is calculated. Normal hours per week is used as the basis to calculate employee leave allocation. For example, if your normal hours per week is 40, your employees will be allocated 4 weeks of 40 hours of annual leave per year (160 hours). d Enter an anniversary date. This date is used to calculate leave. By default, the anniversary date is based on the employee start date, for example, 12 months after start date. If you are converting from another payroll system, you will need to enter the anniversary date to ensure leave is correctly calculated. e Enter the gross earnings since the employees start date (or the employees last anniversary date) and the holiday pay percentage. The holiday pay percentage is usually 8% (that is, four weeks annual leave). The opening Holiday Pay Due balance needs to be manually entered. In most cases, it is 8% of the gross earnings figure. When you start processing payroll, this figure is automatically update after each pay is finalised. 18 CHAPTER 1 YOUR FIRST DAY

18 f Enter any annual leave due when you started using MYOB Payroll in the Annual Leave due as at field (this may be negative for employees who have taken leave in advance). The Current Annual Leave due should now show the employees correct amount of leave due. If it doesn t, modify the hours in the Annual Leave due as at field to correct (negative amounts can be used). g In the Other Leave tab, enter: sick leave days currently owing in the Current Sick Leave field. Also enter the maximum number of days that can be accrued, and the number of days that should accrue each year. alternative holidays currently owing in the Current Alternative Holidays Due field. You are now ready to start using MYOB Payroll to process pay runs. Creating a new payroll You can start using MYOB Payroll immediately, with no prior payroll information. To create a new payroll 1 Start MYOB Payroll and click Create a new Payroll from the welcome window that appears. The New Payroll window appears. 2 Enter the name of the payroll. 3 In New Zealand, the tax year end always ends on 31st March. 4 Set the current month to the month you want to process live pays. This ensures the Employer Monthly Schedule (EMS) is correct. CREATING A PAYROLL FILE 19

19 5 Click OK. The Payroll Options window appears. 6 Enter your payroll settings. If you are using a common anniversary set this under the Leave tab. Note that this information can be changed after the payroll has been created (go to the Tools menu and choose Options). For more information, see see Payroll options below. 7 Click OK. The Payroll Command Centre now appears. You are now ready to finish setting up your new payroll and start processing live pays. To finish entering payroll information in the Payroll Options window, see Payroll options below. To complete any setting up of employees, pay codes or departments, see Overview of maintenance on page 29. Start processing live pays, see Chapter 3, Preparing pays, on page 65. Payroll options You can change options after the payroll is created. Choose Options from the Tools menu at the top of the command centre. Contact details The Contact tab allows you to enter contact details for your business. 20 CHAPTER 1 YOUR FIRST DAY

20 Note the following: The name entered in the Trade Name field appears as the company name on pay slips and other printed reports. The contact name and the phone number are included in the EMS and the Employee s certificate of earnings. KiwiSaver requests employers to provide a mobile phone number. General details The General tab allows you to specify information about PAYE, MyStaffInfo and KiwiSaver. IRD Your IRD (Inland Revenue Department) number is the number that identifies your company to the IRD. You need to enter your IRD Number to ir-file employee information, which appears on the Employer Monthly Schedule (EMS). PAYE is paid to the IRD either half-monthly or monthly. If your total annual PAYE payments are in excess of $500,000, then you are considered a large employer, and are required to pay PAYE half-monthly (on the 5th and 20th of the month). Otherwise payments are due monthly on the 20th. Cash denominations These settings are used when employees are paid in cash. Maximum denominations for cash payments relates to the largest notes used for cash wages. The minimum applies to the payment level that you want rounded. For instance, if the pay is rounded to the nearest dollar choose 1.00 for the minimum denomination. Salary Calculations The Hours per Year and Standard Hours per Day settings dictate how the pay rate is calculated when an annual salary is entered in the employees' employment details. Enter the default standard hours for employees in the Standard Hours per Day field. The Hours per Year options will update accordingly. Individual employee settings can be maintained in the Employee Maintenance section, see Employment Details tab on page 44. For example, if you enter eight hours the available options are: 2080 = 260 days (52 weeks x 5 days) x 8 hours - default 2088 = 261 days (365 days in the year weekend days) x 8 hours = days (365 days in the year / 7 days per week x 5 working days) x 8 hours. PAYROLL OPTIONS 21

21 Leave details Leave anniversary Before you start using MYOB Payroll, you need to decide if you will use a common anniversary or individual anniversaries (based on the employee s start date). Most businesses use individual anniversaries. If you want to use a common anniversary, select the option and enter the date of the next anniversary. When using a common anniversary, you can also specify that any permanent employees (who have been employed since the last common anniversary date) will have their balance of holiday pay converted to annual leave when the next anniversary date occurs. If this option is not selected, the holiday pay balance will be carried forward into the next period and no allocation of annual leave is made. Pay Slips Use the Pay Slips options to specify how you want accrued leave printed on your employees pay slips. For more information about annual leave and holiday pay for individual employees, see Processing employee leave on page 55. If you want, you can specify that ed payslips are password-protected with the employee s IRD number. Accounting integration details The Accounting tab allows you to specify information for exporting payroll information to your MYOB AccountRight or other accounting software. Accounting System When you set up accounting integration, you can create journals to import into your accounting software. This keeps your accounts up-to-date and provides you with cost analysis information for each department. You can integrate with MYOB AccountRight software, or with other accounting packages. If you are integrating with MYOB AccountRight, you can post your GL journals: Manually, using the Create Journals option from the Tools menu. See Creating accounting journals on page 94 for more information. Automatically, by selecting the Automatically post journals into the company file option in this window. Journals will be automatically posted to the specified company file and product specified after each pay run. If you have entered a company file and product path, but not specified payroll account codes, a warning will appear when finalising a pay to advise that no journals will be posted. For information on how to integrate with MYOB software, see Integrating with other MYOB software, page CHAPTER 1 YOUR FIRST DAY

22 Bank & IRD You can use MYOB Payroll to create files for electronically filing information with the IRD. Employers who file electronically do not need to fill out a paper Employer Monthly Schedule. The Bank & IRD tab is used to record direct credit bank account information and the location to which you want to save your Employer Monthly Schedule (EMS) file. Direct Credit Path If you want send direct credit files to your bank enter the bank account from which payments will be made. Select a directory where the direct credit file will be saved to, clicking on the ellipsis button to browse. A file name will automatically be added of the correct file type (extension) based on the bank account details entered. When you finalise the pay, the direct credit file is saved to the specified folder. Please consult the F1 online help for any detailed information relating to specific bank account formats or file extensions. Alternatively, some banks allow you to send batches to them on a disk. IR-File The location on your computer where you want to save your Employer Monthly Schedule (EMS), also known as the IR348, each month when you create it. Reminders MYOB Payroll allows you to create reminders to alert you on a future date. Press F4 to add a new Reminder and when the pay date is equal to or greater than the date entered, an alert will remind you to take the noted action. Press F8 to delete an existing reminder. PAYROLL OPTIONS 23

23 System details Prompts can be switched off by deselecting the relevant option. By selecting the Prompt for printer when printing reports option, you can select which printer you want to use when printing. If not selected, reports are sent to your default printer. If your payroll is stored on a server or another computer, you can change the location where MYOB Payroll looks for the payroll data files. Click the ellipsis and browse for a different location. However, note that if you change this location, you will need to move your data folder to a mapped network drive and then direct MYOB Payroll to this location. If you want MYOB Payroll to automatically confirm your payroll data file when required, select this option. Saving your settings When you have finished entering your payroll options, click OK to save your settings. When you click OK, the command centre appears. 24 CHAPTER 1 YOUR FIRST DAY

24 Opening an existing payroll file To open an existing payroll file 1 If you have created a payroll file it can be opened by clicking Open your payroll from the Welcome to MYOB Payroll window. If you have another payroll file open, go to the File menu and choose Open. The Open a Payroll window appears. 2 Select your payroll file from the Select Payroll list. Once selected, some basic information about the payroll appears. 3 Enter a password, if required. 4 Click Open. Note that, from this window, you can also delete the payroll file. Click Delete to permanently delete the currently selected payroll. If required, you must first enter the payroll s password before you can delete it. Exiting MYOB Payroll To close MYOB Payroll, go to the File menu and choose Exit. You can also click the x in the top right-hand corner of the main window. If the Exit Confirmation option is selected, click Yes to the message that appears. To switch this option off, see System details on page 24. OPENING AN EXISTING PAYROLL FILE 25

25 Your MYOB Payroll data file When you make entries in MYOB Payroll, that information is stored in a file in your computer called a payroll data file. This file allows you to work with your company s financial information without spending a lot of time and effort with your computer s file storage system. You can use MYOB Payroll to keep payroll records for more than one company. If you do so, one payroll file will exist for each company. A payroll file is created immediately when you create a new payroll. If you ve already begun using MYOB Payroll, you might remember that you created a payroll data file for your company by selecting Create a New Payroll from the Welcome window. You can also create a new payroll data file by choosing New from the File menu. Looking after your payroll data file It is very important that you take steps to make sure your data is protected from the following hazards: viruses file corruption hardware failure unauthorised use operator error. For information on how you can protect your data, see the following topics: Backing up and restoring your data on page 96 Repairing the payroll file on page 97 Managing passwords on page 98. Integrating with other MYOB software You can export payroll journals from MYOB Payroll and easily import them into your MYOB accounting software, such as MYOB AccountRight. Task 1: Set up payroll accounts in AccountRight If you re using AccountRight, you need to set up both debit and credit accounts to account for your payroll expenses. Add to your AccountRight accounts list: Credit accounts Payroll Suspense or Payroll Liability account. If you want, you can add individual accounts for tax, deduction and payment accounts. Debit accounts Add wages expense accounts for individual departments, as required. 26 CHAPTER 1 YOUR FIRST DAY

26 Task 2: Select your company file 1 In MYOB Payroll, go to the Tools menu and choose Options. The Payroll Options window appears. 2 Click the Accounting tab. 3 If you use MYOB AccountRight v19: a Select the MYOB AccountRight v19 option. b Click the [...] button and locate the company file you want to send your payroll data to. c Enter the username and password for the company file. 4 If you use MYOB Accountants Office or MYOB Cashbook: a Select the Other option. b Type the data folder path in the Path field. For example, C:\Program Files\MYOB\Cashbook\Data\Clnt1. Task 3: Set up posting options 1 In the Payroll Options > Accounting tab, select the default payroll liability account to which you want to post your payroll journals. If MYOB Payroll locates a valid chart of accounts, a drop-down list will be available. Select an account, for example, Wages Liability, from the chart of accounts displayed in the drop-down list for the default payroll liabilities account. NOTE : Tax, deduction or payment accounts set up in the Maintain Pay Codes window will override the default liability account set up in the Options window If you have setup specific liability accounts for taxes, deductions or payments, specify these in Maintain Pay Codes, these will override the default liability code set here. 2 If you want the journals to have individual lines for each employee, select the Create separate journals for each employee option. 3 If you want to use your MYOB Payroll cost centres as job codes in the AccountRight journals, select the Include cost centres as job codes in journals option. 4 To automatically post journals to the company file (recommended), select the Automatically post journals into the company file option. 5 Click OK. 6 If you want to select account codes for each department or cost centre, go to the Maintenance command centre and click Maintain Departments. 7 If you want to select account codes for your pay codes, click Maintain Pay Codes in the Maintenance command centre. You can select a General Ledger code in the Other tab for each Deduction, Tax or Payment code. Step 4: Export payroll journals When a pay is finalised, MYOB Payroll automatically creates a journal file, formatted for the relevant integration settings. The journals contain debit entries for the gross wages costs allocated to each department for the pay (gross earnings, taxable allowances and non-taxable allowances) and a credit entry for the total wages cost for that pay. You can export the journals manually or automatically. See Creating accounting journals on page 94 for more information. INTEGRATING WITH OTHER MYOB SOFTWARE 27

27 28 CHAPTER 1 YOUR FIRST DAY

28 2 Maintenance Set up and maintain the payroll file, including employees, departments, leave details, cost centres, deductions and pay codes. Overview of maintenance When you set up your payroll, you entered the information you had on hand the time. As your business changes, you ll need to add or change existing details. For example, you may need to add new employees or update leave details. In MYOB Payroll, these tasks are called maintenance. You ll use the Maintenance command centre do most of these tasks. To go to the Maintenance command centre 1 From any MYOB Payroll command centre, click the Maintenance icon. 2 The Maintenance command centre appears. You can do the following tasks: To do this Continue with Add, edit, or delete departments or costcentres Maintaining departments and costcentres on page 30 Add, edit, or delete pay codes Maintaining pay codes on page 32 Add or maintain employee details Maintaining employees on page 41 Managing employee leave details Processing employee leave on page 55 Using Accumulators in MYOB Payroll Maintaining Accumulators on page 63 OVERVIEW OF MAINTENANCE 29

29 Maintaining departments and costcentres The departments and costcentres feature allows you to analyse your payroll costs in more detail. To access this feature, go to the Maintenance command centre and click Maintain Departments. A default department is set up when you create a new payroll. The details of this department can be changed or deleted, however, there must be at least one department. If you are integrating with MYOB AccountRight, you can enter a general ledger account code (see Accounting integration details on page 22) to automatically post accumulated costs. Employees must be assigned to a department. If you don t assign a department to an employee in the employee s setup, or split between departments when entering pay details, the employee's pay will be automatically allocated to the default department. If you don t want to delete a department, you can hide it. Select the This Department/Costcentre is no longer used option and then select the Hide Department/Costcentres no longer used option. Note this option is only available if it has not been assigned to an employee. Costcentres To help you understand how costcentres are used in MYOB Payroll, keep in mind the following: Costcentres cannot exist on their own; they must be part of a department Costcentres are added when adding or editing a department Costcentres are deleted when all departments that use that costcentre have been deleted The same department can be added several times if the costcentre details are different or multiple departments can use the same costcentre details. 30 CHAPTER 2 MAINTENANCE

30 To add a new department 1 Go to the Maintenance command centre and click Maintain Departments. 2 Click New. The New Department/Costcentre window appears. 3 Enter a code and description for the department. The codes are alphanumeric (combination of numbers and letters) and can be up to eight characters long. The description can be up to 25 characters long. 4 If you want to add costcentre details, enter them now. 5 Click OK. The department code is added to the list and the details appear in the General tab. 6 If you are integrating with MYOB AccountRight, enter a general ledger account code (see Accounting integration details on page 22) to automatically post accumulated costs. Note that you need to enter an account for tracking expenses. To delete a department 1 Go to the Maintenance command centre and click Maintain Departments. 2 Select the department you want to delete and click Delete. Departments cannot be deleted if they are still in use by an employee, so it s advisable to delete any departments at the end of the financial year. To change a departments details 1 Go to the Maintenance command centre and click Maintain Departments. 2 Select the department you want to change. 3 Enter the required changes in the General tab. Linking to MYOB general ledger or cashbook software If you are integrating MYOB Payroll with MYOB AccountRight software (see Accounting integration details on page 22), you will need to select a matching expense account code for each department. The list of available expense codes appears in the General Ledger Code list. This list shows the chart of accounts of the company file you are integrating with. Note that as you are tracking department expenses, you need to select an expense account such as wages & salaries. MAINTAINING DEPARTMENTS AND COSTCENTRES 31

31 Maintaining pay codes Pay codes are used to enter pay details for employees and to define the individual components that make up an employee s pay. Some tax codes are provided by default. These are known as standard pay codes. You can add or modify the details of these pay codes, however, they cannot be deleted. If a pay code is no longer active, it can be marked as no longer used. Alternatively, you can set the pay code type to OLD, see Pay Defaults / Totals tab, page 46. It is recommended that you setup pay codes before adding any employees. In the Maintenance command centre, click Maintain Pay Codes. To add a new pay code 1 Go to the Maintenance command centre and click Maintain Pay Codes. 2 Click New. The New Pay Code window appears. 3 Select a pay code type from the Pay Code Type list (see Pay code types on page 33). Note that once you create the pay code, you cannot change the pay code type. 32 CHAPTER 2 MAINTENANCE

32 4 In the Pay Code field, enter a short description, with no spaces, up to eight characters long. This will be used when entering pay details for an employee. 5 In the Pay Code Description field, enter a more complete description of what the pay code is for. This will appear on the employee s pay slip. 6 If you want all existing employees to have this new pay code, select the Add this Pay Code to all current employees option. This option is unavailable if you have an active pay. 7 Click OK. The new pay code appears in the pay code list and the pay code details appear in the panel on the right. 8 Enter the pay code details. See Editing pay codes, on page 34. Pay code types You can choose from seven pay code types when creating a pay code. Pay Code type Gross earnings Taxable allowances Pre-tax deductions Taxes Non-taxable allowances Post-tax deductions Payments Description Taxable earnings on which holiday pay is calculated. All earnings that the employer is required to pay by the employee s terms of the employment, attract holiday pay. Most employee earnings are in this category, which includes annual leave, all allowances and performance related earnings. For example, shift allowances, commissions and bonuses. The cash value of board or lodging provided by the employer is also defined as gross earnings. Taxable earnings on which holiday pay is not calculated, such as one-off bonuses, or any other lump sum special payment that the employer is not required to pay by the employee s terms of payment. This includes redundancy pay and the payment of holiday pay itself. Deductions from pay before tax is calculated. PAYE deductions. Reimbursing allowances that are not taxable, such as meal and mileage allowances. All deductions from pay after tax has been calculated. Payments made on behalf of the employee such as union dues, social club and superannuation contributions. Net pay paid out as cash, cheque or direct credit. MAINTAINING PAY CODES 33

33 Editing pay codes You can change the details of a pay code, except for the pay code type. You enter these changes in the Edit Pay Codes window. To edit a pay code 1 Go to the Maintenance command centre and click Maintain Pay Codes. 2 Select the required pay code from the list. When you select a code, the pay code details appear in the right panel of the window. You can edit it using the five available tabs. Tab Description See General Employer Super Other Edit the description and name of the pay code, and other general pay code information. Define superannuation contributions associated with a pay code. Only available for Pre-tax deduction or Post-tax deduction pay codes types. Set up direct credit bank account details, department and costcentre analysis, and enter pay code default quantities. If you integrate your accounting software, you can enter a liability account code for tax, payment and deduction codes. page 35 page 36 page 37 Accumulators Define accumulators associated with a pay code. page 39 Totals View monthly totals for this pay code for the current year. page 40 NOTE : Unavailable fields Some pay code details cannot be changed, such as the pay code type and the set up of default pay codes. 34 CHAPTER 2 MAINTENANCE

34 General tab This tab allows you to specify basic pay code information. A B C D E F A Pay Code, Type & Description You can change the pay code description, with the exception of some default codes and the pay code type. This is set when the pay code is created. B Units If you are creating a Gross Earnings pay code type, you can define a single unit of activity. For example, ordinary time could be hours, picking apples could be bins. C Pay Code rate is based on employee s pay rate Each employee can have up to three basic rates of pay. These are set in the employee s Employment Details tab. D Multiplied by If the pay rate for the pay code you are adding is a multiple of one of the basic rates, select Normal, Second or Third and enter the multiplier (or rate factor) in the Multiplied by field. For example, time-and-a-half has a rate factor of 1.5. Remember, if you base the pay code on a rate and multiply it by zero, it will always calculate zero regardless of the quantity. E Default Pay Rate If you do not want to use the employee s pay rate, choose a rate of None and enter a rate in the Default Pay Rate field. If you want this rate to apply to all employees assigned this code, select the This rate is common to all employees option. With this option selected, employees are automatically updated if you change the rate. However, any active pays will use the old rate unless the pay is cleared and re-entered. F Pay code options If you want to change the pay rate when entering an employee s pay details, select the Allow rate to be modified when entering pay details option. This is recommended where the pay code rate varies with each pay, such as a bonus pay code. If the new rate will include holiday pay, select The modified rate is inclusive of Holiday Pay option. When this new rate is entered to overwrite the current rate, it will automatically be reduced so that the holiday pay portion is split out. This is not a common situation. You can print pay rates as percentages on pay slips by selecting the Print on pay slips as a percentage option. If a rate is a percentage of gross earnings, (for example superannuation deductions) select this option to automatically print the rate as a percentage on pay slips (for example, a rate of 0.05 will print as 5%). If the pay code is to be added to the default pay details of new employees, select the Use this Pay Code for all new Employees option (see Pay Defaults / Totals tab on page 46). EDITING PAY CODES 35

35 Super tab This tab is only available for pre-tax deductions or post-tax deduction pay codes. A B C D E F G H A B C D E Activate super contributions Superannuation Fund Name Contribution Formula % of Employee Contribution Maximum % of Employee s Gross Earnings If you want to use this pay code for Superannuation deductions, select the Employer Superannuation Contributions are based on this pay code option. You can then define how the superannuation contributions are calculated. Enter the fund name as it will appear on pay slips. This is only used for reporting purposes and is not used to calculate the actual contribution. This field determines the employers contribution as a percentage of the employee s contribution. For example, if the employer is paying the same amount as the employee, enter 100%. This field calculates the employer s contribution as a percentage of the employee s gross earnings. For example, an employer matches the employee s contribution but will not pay more than 5% of the employee s gross earnings. An employee can contribute any percentage of their earnings they like and the employer will match this up to the maximum set here. F Maximum Amount This field can be used as a limit on the calculations in the other fields or as a fixed dollar amount. G Include with Direct Credits Select this option to include superannuation payments with the payroll direct credit files. Complete the relevant bank account details on the Other tab, page 37. H Dept/Cost Centre If employer super contributions are to be assigned to a specific department or cost centre for accounting purposes, select it here. 36 CHAPTER 2 MAINTENANCE

36 Other tab The Other tab includes details about cost analysis and direct crediting of payments. A B C D E A B C D Department and cost centre analysis Include in Direct Credit Schedule Nominated bank account Use the Total Gross Earnings for the Employee's pay as the default Quantity for this Pay Code This field can be used to export payroll costs by department. Wage costs can be calculated for accrual accounting purposes when posting to MYOB AccountRight software and when printing the cost analysis and period reports. For example, accruing leave, based on actual wages paid. For gross earning and allowance pay code types, you can assign a department. This will override the employee s default department (however, defaults can be overridden when entering pay details by clicking the Split Pay button). For tax, deduction and payment pay code types, you can assign a liability account code. If no accounts are specified, payroll journals will use the default payroll liability account set in your payroll options, Accounting integration details on page 22. Select this option to include the pay code on the Direct Credit Schedule. If you want the direct credit amount to print separately, select the As separate amounts for each employee option. Enter the bank account this payment will be credited to (you first need to select the Include in Direct Credit Schedule option). You can use this to organise superannuation credits or to set up payment of an employee s wages to a credit card account (for details of the correct bank account and reference details required, contact the card issuer). Each employee has one default bank account set up in employee maintenance. If you want to split an employee's wages between multiple bank accounts, you need to set up a new payment type pay code for each additional bank account that the employee requires. See To set up multiple bank accounts for an employee on page 38. Select this option for any pay code that will use the total amount of earnings as its base pay rate. For example, if an employee wants to contribute 5% of gross earnings to a super fund, set up the superannuation pay code and select this option. In the employee s Pay Defaults/Totals tab, enter 0.05 in the Rate column. E Payroll giving If this deduction is eligible for the payroll giving scheme, select the This deduction qualifies for the Payroll Giving Tax Credit option. Note that is option is not active if you have set up the pay code to calculate superannuation or you have not entered a file path in the ir-files field (Payroll options window). For more information, see Payroll giving on page 38. EDITING PAY CODES 37

37 To set up multiple bank accounts for an employee 1 Go to the Maintenance command centre and click Maintain Pay Codes. 2 Click New. The New Pay Code window appears. 3 Select the Payments Pay Code type. 4 Enter a pay code description. We recommend that you use the prefix 'DC' followed by the employee's initials in the code to make it unique. 5 Click OK. The new pay code appears in the pay code list and the pay code details appear in the panel on the right. 6 Click the General tab. 7 In the Default Pay Rate field, enter the amount the employee wants to credit to that account. 8 Select the Allow Rate to be Modified option. This allows you to change the default rate when entering the pay details. 9 Click the Other tab and enter the bank account details. 10 Add the pay code in the employee s pay details (you do this from Pay Defaults/Totals list in the Maintain Employees window). For information on setting up an employee s default bank account, see Employment Details tab on page 44. Payroll giving The Payroll Giving scheme allows employees to make donations to registered NZ charities and to claim a tax credit in their current pay, rather than at the end of tax year. Before you can record payroll giving tax credits, you need to set up a post-tax deduction pay code to record donations and assign the pay code to your employees. Note that the payroll giving scheme is only available if you file employer schedules electronically using the file transfer service (ir-file). Donated funds need to be transferred to charities according to IRD timing rules. To ensure payments are made on-time, we recommend that you transfer funds directly to the charity at the completion of each pay. You can do this by including payroll giving amounts in your direct credit schedule. To set up a payroll giving deduction 1 Go to the Maintenance command centre and click Maintain Pay Codes. 2 Click New. The New Pay Code window appears. 3 Select the Post-Tax Deductions pay code type and enter the pay code details. 4 Click OK. The new code appears in the pay code list. 5 Click the Other tab and select the This deduction qualifies for the Payroll Giving Tax Credit option. NOTE : If the payroll giving option is not active This option is not active if you have set up the pay code to calculate superannuation or you have not entered a file path in the ir-files field (go to Tools > Options and click the Bank & IRD tab). 6 If you want to transfer funds directly to the charity at the end of each pay, select the Included in Direct Credit Schedule option and enter the bank account details for the charity. 7 Complete the pay code set up as you normal do. For more information, press F1 to open the help. 38 CHAPTER 2 MAINTENANCE

38 To assign a payroll giving pay code to an employee The payroll giving tax credit pay code (PGTC) is automatically assigned to an employee's default pay when you assign a payroll giving deduction pay code. 1 Go to the Maintenance command centre and click Maintain Employees. 2 Select the relevant employee and click the Pay Defaults/Totals tab. 3 Click New. The Select a Pay Code to Add window appears. 4 Select your payroll giving deduction pay code and click OK. The selected pay code and the payroll giving tax credit pay code (PGTC) are assigned to the employee's default pay. Accumulators tab Accumulators enable you to keep track of extra information relating to the hours worked by an employee or some other quantity. A B C A Apprentice hours Select this option if you use this pay code to record the number of apprentice hours worked. When using this option, all the 'hours' (that is. any quantities paid for pay codes defined to accumulate into apprentice hours) are added to the apprentice hours total for that employee. B Accumulate quantities Select the accumulator from the list that this pay code will add or subtract from. Accumulators are setup using the Maintain Accumulators option from the Payroll menu. See Maintaining Accumulators on page 63. More than one pay code can be assigned to the same accumulator. For example, you may have setup a bonus for your apple pickers if they pick more than 30 bins in a week. After adding a Bin Bonus accumulator you would assign this accumulator to the BINS (Gross Earnings) pay code and set it to increase the accumulator so you can determine if any pickers have earnt the bonus. C Increase or decrease Determine whether this accumulator will increase or decrease e.g. a running total of bins picked will increase whereas a staff loan will decrease as it is paid off. EDITING PAY CODES 39

39 Totals tab The Totals tab displays monthly and year-to-date pay totals, and the total of the last finalised pay. These totals are updated when you finalise each pay and cannot be changed in the Totals tab. Note that you can view YTD pay code information for an employee by double-clicking a YTD column in Pay Defaults/Totals tab of the employee s details (Maintain Employees). A B C A Monthly totals Displays the totals for the month, using the date the pay was finalised. For example, if the pay was finalised 6 July then it would be included in the July figures. B Yearly total Shows the total for this code for the current tax year, that is, since April. C Total for last pay Shows the total of the last finalised pay. 40 CHAPTER 2 MAINTENANCE

40 Maintaining employees It is recommended that you only set up employees after you have set up other areas of your payroll. By doing this, you can set up default details to automatically add to new employee records. For example, when you set up pay codes, you can specify that the pay code is automatically added to new employees. This avoids needing to manually add the pay codes to each employee. The employee form enables you to set up and manage the various details within your employees records. It contains all your employees details, their individual pay defaults and leave information. The following topics are covered in this section: Adding employees, see To add an employee on page 42 Deleting employees, see To delete an employee record on page 42 Editing employee details. In the Maintenance command centre, click Maintain Employees. If an employee has an active pay, a message will display when you open the Maintain Employees window. If you edit an employee s pay details while a pay is active you will need to re-enter the pay details in the active pay. Search for an employee To quickly find an employee, click Select Employee and select them from the list that appears. You can also use the arrow buttons at the bottom of the window to navigate through the list of current employees. They are sorted in employee code order. To view past employees as well, deselect the Hide all finished employees option in the top left corner. A status will appear to identify ex-employees. MAINTAINING EMPLOYEES 41

41 To add an employee 1 Go to the Maintenance command centre and click Maintain Employees. 2 Click New. The New Employee window appears. 3 Enter a code in the Employee Code field. Each employee must have a unique code (which can be numbers or letters). We recommend the first four or five letters of the surname followed by the initials. This ensures that reports will be printed in alphabetical order for surnames. If you use numbers for your employees, make them the same length by including leading zeros (otherwise 11 comes before 2 alphabetically). Employee codes can be changed at any time. 4 If you want to copy selected information from an existing employee, select the Copy the following information from Employee Code option. Press F9 to select the employee you want to copy from. Select the required copy options. 5 Click OK to save the record. To delete an employee record You can only delete an employee record if their leave balance is zero and there are no finalised pays for the current tax year. 1 Go to the Maintenance command centre and click Maintain Employees. 2 Select the employee you want to remove and click Delete. Note that employees that have a finish date entered in the Employment Details tab, can be removed using the Purge Old Data function (available from the Tools menu). 42 CHAPTER 2 MAINTENANCE

42 Personal Details tab You enter employee details in the Personal Details tab. This information can be printed, along with the employee s pay information, on the Employee Details report (see page 88). If the employee is also an owner of the firm, select the Working Proprietor option (this is used by the Employee Statistics, on page 88). A C D B E F A Window tabs Access different employee details by clicking the relevant tab. B Personal details Enter an employee s details here. The current information can be reviewed by printing the Employee Details report. C D Permanent residency Contract Reference Select this option if the employee is entitled to reside permanently in NZ, and does not require a work permit. This determines KiwiSaver eligibility. If applicable, enter a reference number for the employee's employment contract (or agreement). E Password For use when ing payslips. The password will default to the employee s IRD number e.g F pay slips If this option is selected, the employee s pay slip will be ed to their recorded address instead of printed. MAINTAINING EMPLOYEES 43

43 Employment Details tab Use the Employment Details tab to enter the employee s payroll details. A B E F G C D A Default department Select a default department to assign the employee. This can be overridden during entering pay details if required. See To add a new department on page 31. B Dates Enter a start date when the employee began work for the company. If the person ceases to be an employee, enter a finish date. Note that all leave due must be zero before you can enter this date. If employment is temporary, enter date in the Employment will finish on field. For information about entering dates for an employee rehired in the same payroll year, see Start / finish dates and leave, on page 45. C D E Pay frequency, Tax Codes & IRD number Round pay & apprentice hours Standard Hours per Day Pay Frequency Choose a pay frequency from the list. Employees can have different frequencies. IRD Number Enter the employee s IRD Number. If no IRD Number is entered the tax code will default to No Declaration. Tax Code Select the employee s tax code. This affects the tax deducted from the employee s pay. If you are unsure which tax code to use, please consult the IRD. See also Entering an STC tax rate, page 45. The Round pay to nearest [X] option (where X is the minimum denomination selected, see General details on page 21) allows you to round the net pay to the set minimum denomination. Use this option when you are paying by cash or cheque, particularly if the cheque is going to be cashed. Any rounding is recorded and subsequent pays are adjusted, for example, if it rounds up 2c this pay, the next pay is rounded down accordingly. If apprentice hours need to be recorded, select the Apprentice hours accumulated to date option. Any pay codes set up to accumulate apprentice hours will be totalled in this box. When setting up an employee, hours already accumulated can be manually entered. If the employee s standard hours are different from the default, enter it here. This is used for salary calculations. See also Leave details, page 22. F Pay Rates Enter up to three pay rates. The first pay rate would normally be their basic hourly rate. Pay codes can be set to use a specific pay rate. Do not use the other rates for overtime or pay rates that are multiples of the basic rate, use ORD1.5 or ORD2 pay codes instead. Also see Annual salary and pay rates on page 45. G Bank Account Enter a bank or credit card account if the employee is paid by direct credit. A two digit suffix is acceptable. Enter the particulars, code and reference that the employee wants to show on their bank statement. To enter more than one bank account for an employee, see To set up multiple bank accounts for an employee on page CHAPTER 2 MAINTENANCE

44 Annual salary and pay rates If the employee is paid a salary, you can enter it in the Full Time Equivalent Salary field. The pay rate will automatically be calculated based on this figure. If there is no annual leave entitlement, you can change the pay rate unit; hours, days or weeks. The pay rate will adjust accordingly. For information on changing the calculation basis see Salary Calculations, on page 21. Entering an STC tax rate If an employee has an STC (Special Tax Code) certificate from the IRD, you enter the STC rate in the Tax Rate % field on the Employment Details tab. Note that the STC rate includes the ACC Earner Levy. As MYOB Payroll calculates ACC Earner Levy separately, you need to enter the STC rate exclusive of the levy. For example, if the employee s STC rate is shown as 22%, then deduct your ACC Earner Levy (1.7% at the time of publishing), and enter the result (20.3%) in the Tax Rate % field. Start / finish dates and leave If a casual employee (that is, an employee that is only entitled to holiday pay and not annual leave) returns later in the year, the finish date can be deleted and a new start date entered. If a permanent employee (that is, an employee entitled to annual leave) returns later in the year, you will need to set up a new employee record for this employee. As the annual leave calculation depends on the employee's start date and leave anniversary date, this ensures leave is correctly calculated. You can use the Reason for Leaving field to record details of an employee s departure if you want to maintain this information for reporting purposes. The finish date and reason for leaving details can be viewed on the Employment Details tab, and can be printed using the Staff Turnover report. All employees with a finish date can be removed by using the Purge Old Data option available from the Tools menu. For more information on how leave is calculated see Processing employee leave on page 55. For information on processing an employee s final pay, see Preparing final pays on page 72. MAINTAINING EMPLOYEES 45

45 Pay Defaults / Totals tab The pay defaults allow you to streamline your payroll processing, as you can set the pay defaults to be an employee's standard pay. A B C D E A Pay code & description F The pay codes that appear in this window are included as the default pay for the employee. Pay codes with the Use this Pay Code for all new employee option selected are automatically added to new employees (for more information, see General tab on page 35). You can add or remove pay codes, as required. B Quantity The quantities entered are defaults only and can be changed when processing pays. These are the pay details that will be entered when you use the Calculate Default Pays option. Codes which are not based on an employee s pay rate are generally set to one. C Rate If the pay code rate is based on an employee s pay rate or uses a default pay rate, it cannot be edited here. If the pay code allows it, it can be edited while entering the employee s pay details. D Type You can select one of the following types: Variable (V) is the default type and will apply for most pay codes. It is used where the rate or the quantity will vary from pay to pay. Use this type when the rate or quantity is automatically calculated (such as tax). Regular (R) is used for defaults that are fixed amounts from pay to pay, such as a fixed amount to be paid to a bank account. For example, if an employee wants $100 paid to one bank account and the balance paid to other account, you would set up two payment pay codes; a Regular type pay code with a fixed payment of $100 and a Variable type pay code to record the balance. (Note that if an employee has more than one payment default, only one pay code can be variable, the others must be regular.) Note that changing pay codes to the Regular calculation type that need to be automatically calculated (such as the TAX code), will suppress the calculation. You need to use the Variable type for these pay codes. Old (O) is used for defaults that are no longer used but cannot be deleted. These are not visible when entering pay details. To select a pay type, enter the first letter of the type you want to use; V (variable), R (regular) or O (old). E Totals The Quantity YTD and Gross YTD are updated after every pay is finalised. For more detail, double-click a YTD column to print an employee, pay code specific report. F Split Default Create a default department split for the selected pay default. Use this option where the cost of a pay code is allocated between more than one department. You can modify the split amount when entering pay details. For more information see To split pay defaults across departments on page CHAPTER 2 MAINTENANCE

46 The columns in the Pay Defaults/Totals window can be rearranged by clicking a column heading and dragging to a new position. Column widths can be changed by clicking and dragging the divider between column headings. To add a pay default 1 Go to the Maintenance command centre and click Maintain Employees. 2 Select the required employee. 3 Click the Pay Defaults/Totals tab. 4 Click New. The Select a Pay Code to Add window appears. 5 Select a pay code and click OK. The pay code appears in the default code list. 6 If required, enter the default details. NOTE : Adding a pay default when entering pays Pays window. You can add a pay default when entering a pay by clicking Add Default in the Enter To remove a pay default You cannot delete a pay default that has a current year total. If you no longer use the pay default, change the Type to Old (press O). These are not visible when entering pay details. 1 Go to the Maintenance command centre and click Maintain Employees. 2 Select the required employee. 3 Click the Pay Defaults/Totals tab. 4 Select the pay code you want to remove. 5 Click Delete. A confirmation message appears. 6 Click Yes. To split pay defaults across departments The Split Default function is used to split the cost of an employee s pay code between multiple departments. For example, if an employee splits their time between the Auckland and Christchurch offices, you would use the Split Default function. 1 Go to the Maintenance command centre and click Maintain Employees. 2 Select the required employee. 3 Click the Pay Defaults/Totals tab. 4 Select the pay code you want to split. 5 Click Split Default. The Permanent Department/Costcentre Splits for window appears for the selected pay code. MAINTAINING EMPLOYEES 47

47 Note that some pay codes, such as TAX, cannot be split for cost analysis. 6 Press F9, select the department you want to assign and click OK. The department is added to the list. Note that the department is given a P type to indicate that the split is permanent. Pay code splits entered when preparing an pays are given a T (temporary) type. 7 Enter the quantity of units (such as hours). 8 Click New to add another department row. 9 Repeat from step 6 above for each department you want to add. 10 Click OK. The Pay Defaults/Totals window appears. Leave Details tab Maintaining leave information is discussed in detail in Processing employee leave on page CHAPTER 2 MAINTENANCE

48 Next of Kin tab It is important to keep these details up-to-date, particularly for emergency purposes. A B A B Next of Kin details Alternative Contact Details Next of Kin is the person most closely related by blood to the employee. The emergency contact can be the same person. However, this will depend on the employee s preferences. Use this text box to list another contact, preferably someone who does not live with the employee. Press Ctrl+Tab to exit or click outside of the text box. Qualifications & Notes tab The Qualification and Notes fields allow you to record additional employee details. A B A Qualifications Use the Qualifications field to record an employee's qualifications including any training courses attended. This is useful if an employee reference is needed. B Notes Record any other payroll issues specific to that employee, such as pay-rise dates. You can also enter notes from the Enter Pay Details window. MAINTAINING EMPLOYEES 49

49 Pay History tab A B A Pay details All finalised pays are listed for the current year. These details cannot be edited. The Round column shows any rounding details for this pay. B Reprint pay slip Double-click a pay to reprint the pay slip. It is an exact recreation of the pay slip, however the employee s address and tax code will be current. These reprinted pay slips cannot be printed on secure pay-slip stationery. 50 CHAPTER 2 MAINTENANCE

50 Compulsory Deductions tab Use this tab to manage compulsory deductions from the employee's pay. CAUTION : Authorisation required Only use this tab when provided with the appropriate letters from institutions listed below. MYOB Payroll will apply the rules based on the information entered to calculate the correct deduction amounts. A B C D E A KiwiSaver If an employee starts after 01/07/2007, the Eligible for KiwiSaver option is automatically selected. Employees must opt-out if they do not want to join KiwiSaver. If an employee started before 01/07/2007 and they want to join KiwiSaver, you need to manually select this option. If the option is not available, check their Personal Details tab to make sure they meet the scheme criteria (for example, they must be 18 or older and a permanent resident). Employees can stop making contributions for up to five years, if they have been a member for 12 months or longer. Note that newly hired casuals are not automatically enrolled into KiwiSaver, you need to opt them in manually. B C Inland Revenue Arrears Dept of Courts Enter the original sum of the amount owing. The IRD pay code is automatically added to the employee s pay defaults, see page 46 (IRD rates are used). On the next pay run, the IRD Pay Code will show the balance owing, and either calculate 10% of the total amount owing, or 20% of the employee s gross earnings - whichever figure is less. This amount will be automatically calculated and deducted from the balance owing after each pay run. The amount will automatically stop being deducted when the total amount has been paid. Enter fine amount into the Fines in Default field. If your employee has a Fines Number or a CID Number, enter these into the relevant fields. The COURT pay code is automatically added to the employee s pay defaults, see page 46, and sets the quantity to one. Set the rate for this pay default to the amount to be deducted each pay. The amount will be deducted at this rate, or part thereof if the net pay is less than the protected net earnings. The amount will automatically stop being deducted when the total amount has been paid. D WINZ Enter the WINZ customer reference provided by the employee or WINZ. The ISS pay code is automatically added to the employee s pay defaults, see page 46, and sets the quantity to one. Set the rate for this pay default to the amount to be deducted each pay. When notified to stop deducting these amounts, change the pay code rate to 0 and the type to Old. E Student Loan Deductions Select SLCIR (Commission deduction) for additional student loan deductions, which have been ordered by the IRD. Enter the details of the payment, as instructed by the IRD. Select SLBOR (Borrower deduction) for additional student loan deductions made voluntarily by an employee. Enter the details of the payment. MAINTAINING EMPLOYEES 51

51 KiwiSaver Eligibility flowchart 52 CHAPTER 2 MAINTENANCE

52 Accumulators tab When you have set up an accumulator (see To add an accumulator on page 64), you can add it to an employee and enter an opening balance, if required. Note that apprentice hours are setup on the Employment Details tab. For more information, see Employment Details tab on page 44. To add an accumulator to an employee 1 Go to the Maintenance command centre and click Maintain Employees. 2 Select the required employee. 3 Click the Accumulators tab. 4 Click New. The Select an Accumulator list appears. 5 Select an accumulator and click OK. 6 [Optional] Enter a balance. For accumulators that increase (such as long service leave), the balance would usually be zero. For accumulators that reduce (such as a staff loan), enter the opening balance that will be deducted from. Negative amounts can be used. To remove an accumulator for an employee The accumulator balance must be zero before it can be deleted. 1 Go to the Maintenance command centre and click Maintain Employees. 2 Select the required employee. 3 Click the Accumulators tab. 4 Select an accumulator. 5 Click Delete. A confirmation message appears. 6 Click Yes. MAINTAINING EMPLOYEES 53

53 Reminders tab Use this tab to manage reminder alerts for future actions. Reminders that are due are displayed when the payroll s current pay date is updated. A B A Reminder details The date the user will be alerted and a brief description of the action that needs to be taken. B Status An Active status indicates the reminder is still in use. The Completed status is for reminders that are no longer required. To set a reminder for an employee 1 Go to the Maintenance command centre and click Maintain Employees. 2 Select the required employee. 3 Click the Reminders tab. 4 Click New. The Maintain Reminders window appears. 5 Enter details of the reminder, such as the date you wish to reminded on, a brief description of the action required and related notes. 6 The status will default to Active. 7 Click OK. To edit a reminder for an employee 1 Go to the Maintenance command centre and click Maintain Employees. 2 Select the required employee. 3 Click the Reminders tab. 4 Double-click a reminder. The Maintain Reminders window appears. 5 Update the details as required. 6 Click OK. 54 CHAPTER 2 MAINTENANCE

54 To delete an reminder for an employee 1 Go to the Maintenance command centre and click Maintain Employees. 2 Select the required employee. 3 Click the Reminders tab. 4 Select the reminder you want to delete. 5 Click Delete. A confirmation message appears. 6 Click Yes. Processing employee leave This section explains how to use MYOB Payroll to calculate employee leave and provides some background on leave entitlements ( General Leave information on page 58) and where you can go for more information ( Additional resources on page 58). If you are unfamiliar with any leave-related terms, see the Glossary on page 62. Managing leave with MYOB Payroll When a permanent employee starts work, and up until their first anniversary of employment, they accrue holiday pay at a minimum of 8% of their gross earnings. (8% equates to an entitlement of four weeks annual leave once they have worked a full year.) At their holiday anniversary, holiday pay is converted to annual leave and reset to zero. The annual leave becomes due at their average weekly earnings divided by their normal time per week (hours, days) or their normal pay rate, whichever is higher. (You can manually check the holiday anniversaries that need updating by selecting Holiday Anniversary from the Tools menu.) Holiday pay starts accruing again on the next year s earnings. Annual leave may be taken in advance at the employee s calculated annual leave pay rate, using the ANHL pay code. If the employee ceases employment, they will be due for any holiday pay that has accrued since their last anniversary date, plus the balance of annual leave (which may be a negative quantity if leave has been taken in advance). Casual employees are not entitled to annual leave. Instead, holiday pay is paid out with each pay, or at the end of each period of employment. Any holiday pay accrued at their anniversary date is carried forward to their next year of employment. You set up and monitor annual leave, holiday pay, sick leave and leave-in-lieu in the Leave Details tab of the Employee Maintenance window. The Leave Details tab has two sub sections: Annual Leave & Holiday Pay tab, page 56 Other Leave tab, page 57. PROCESSING EMPLOYEE LEAVE 55

55 Annual Leave & Holiday Pay tab A B C D E A B C D E Normal work arrangement Holiday Anniversary Date Gross Earnings since Annual Leave due Annual Leave rate calculation Enter the normal days and hours worked per week. This figure is used to allocate annual leave and for the calculation of leave rates. If an employee s work hours are highly variable, it is preferable to enter the minimum number of hours worked, rather than the maximum hours. In this case, additional hours worked will be reflected in their annual leave pay rate. If hours worked are overestimated, additional hours of leave will be allocated to the employee leave balance, but the leave will be paid at their normal rate. As such, their entitlement will be inflated. For casual employees, do not set them up with any normal time per week. Note that the unit of measurement is determined by the pay rate section on the Employment Details tab. MYOB Payroll defaults to each employee having their own individual anniversary date for calculating annual leave entitlements. For a new employee, this will default to one year from the employee s start date. The anniversary date can be changed, but may require the employee s other leave information to be manually adjusted. If you have selected the option to use a common anniversary date, the common anniversary date is shown (see Leave details on page 22). Annual leave entitlements for all employees are calculated and due at that date. Enter the employee s gross earnings since their last anniversary date. This will be zero for new employees. Enter the percentage that holiday pay accrues at during the year. For permanent employees, multiply the gross earnings by the holiday pay percentage to get the current balance of holiday pay due. For casual employees, enter the balance of holiday pay that has not yet been paid out. Holiday pay due will be zero for new employees. The gross earnings field is updated each time a pay is finalised and is based on pay codes with the type gross earnings. Enter the balance of annual leave due at the time the payroll is set up. You will need to manipulate this figure until the figure in the Current Annual Leave due field is correct. Enter the pay rate that this leave is due to be paid at so that the correct value of annual leave is displayed. This rate can not be less than the employee s normal pay rate. Click the ellipsis to view how the employee s leave rate is calculated. It is based on the preceding 12 months gross earnings. If no pay history exists, you will need to manually override this amount or use the Enter History option (Tools menu), see Entering pay history, page 100. For details on calculating these amounts, refer to the F1 online help. 56 CHAPTER 2 MAINTENANCE

56 Other Leave tab A B C D A B Sick Leave, (see also Sick leave on page 61) Alternative Holidays due Sick Leave is a minimum of five days per year after the first six months of service. Employers can agree to more than this. Whenever the SICK pay code is used this balance is updated. Next Sick Leave Anniversary Date - Sick leave anniversary updates are separate to annual leave updates. You will be prompted to update when sick leave anniversaries are met. For new employees, the sick leave anniversary date will default to six months after their start date. Each employee has: Current Sick Leave due (zero, if new) Maximum Sick Leave Entitlement This is the maximum amount of sick leave that can be accumulated (zero, if there is no maximum) Annual Sick Leave Entitlement This is recorded in days and paid at an employee s normal pay rate. If you are setting up sick leave for a new employee whose entitlement is per the Act, enter: Annual entitlement of 5 (days) Maximum entitlement 20 (days). This is the number of days that the employee has owing for working on public holidays (the day credited for working a public holiday is known as an Alternative Holiday), which can be taken sometime in the future. When setting up a new employee this will be zero. When setting up an existing employee, enter the outstanding balance. When the LIEU pay code is used, this balance will be updated. Note that the LIEU pay code should only be used for alternative holidays. If you need to record time off in lieu, use the TOIL (Time off in lieu) pay code and add the TOIL accumulator to the employee (see Accumulators tab, page 39). C Parental Leave Record the start and end dates of the employee s leave in these fields. You can run the Parental Leave details report from the Reports >Employee Reports menu. This provides you with the required information to complete the IR880 form. D Employment Relations The fields in the Employment Relations section concern the requirements of the Employment Act relating to collective contracts. Enter in the contract title, expiry date, employment relations education leave due, and the relevant expiry date. A pay code (EREL) has been added for employment relations education Leave. PROCESSING EMPLOYEE LEAVE 57

57 Additional resources The Department of Labour has provided many helpful publications to assist with understanding your obligations as an employer. Visit for publications and fact sheets that clearly explain what employees are entitled to and how to calculate these entitlements. General Leave information Employers and unions or employees can agree to better annual leave rights than those in provided in the Holidays Act, but not to less. Many employment agreements, for example, give employees extra leave entitlements after they have worked for the same employer for a number of years. We recommend that you review your employment agreements in light of changing legislation to make sure they are legal. For example, check that the following are covered: Ordinary weekly pay amount Relevant daily pay amount How unpaid leave is managed. Accident compensation An employee injured doing their work and is unable to work, is entitled to be paid compensation by their employer for loss of earnings in the first week following the injury. This is 80% of the earnings lost as a result of not being able to work. After the first week, ACC pays the compensation and will provide other assistance to get the employee back to work as soon as possible. An employee who is injured outside work is not entitled to loss-of-earnings compensation from their employer for the first week. Ask the nearest ACC office for more information about what you are eligible for after an injury. Annual leave The Holidays Act gives all employees rights to paid annual leave, whether they are full-time, part-time, fixed-term, temporary or casual employees, adults or young employees. Employees are not lawfully able to agree to give up these rights. Employees are entitled to at least four weeks paid leave after they have worked continuously for the same employer for 12 months. 58 CHAPTER 2 MAINTENANCE

58 Annual Leave rate calculation While MYOB Payroll has been designed to automate much of the process of annual leave rate calculation, it is worthwhile knowing how the process works. The following diagrams shows how the two major rates annual leave rate and relevant daily pay are calculated. Christmas and seasonal shutdowns If an employer has a closedown period (for example, for Christmas or at the end of a season), employees who have not been employed for 12 months can agree to take annual leave in advance or have their accrued holiday pay balance paid out. If the holiday pay balance is paid out, the employee's leave anniversary date should be reset to 12 months from the shut down date. Some business can simplify this process by using a common anniversary date. PROCESSING EMPLOYEE LEAVE 59

59 Annual Leave For each unit of paid annual leave, employees are paid the larger of: their average weekly earnings or their ordinary weekly pay. Holiday pay should be paid before the employee's holiday starts. In some limited circumstances, for example casual employment, the Courts have allowed holiday pay to be paid on a 'pay as you go' basis. However, your employee's agreement to this should be clearly recorded in writing, in order to show that they understand this arrangement. Holiday pay at the end of employment When finishing employment, employees are entitled to be paid any remaining balance of annual leave and any remaining balance of holiday pay. See To calculate a final pay, page 72. Public (statutory) holidays By law, every employee is entitled to not less than 11 public holidays each year, which should be paid holidays for the employee when they fall on days of the week on which the employee would normally work. Public holidays are in addition to paid annual leave days. There are two groups of holidays, with slightly differing entitlements applying to each: Christmas and New Year: Christmas Day (25 December), Boxing Day (26 December), New Year's Day and the day after (1 and 2 January) All other holidays: Waitangi Day (6 February), Good Friday and Easter Monday (dates variable), ANZAC Day (25 April), Queen's Birthday (first Monday in June), Labour Day (fourth Monday in October) and Provincial Anniversary Day (date determined locally). Record keeping Employers must keep records of annual holidays for six years. The following information must be kept: the employee's name the date on which the person's employment started the date the person's employment ended the date on which the employee becomes entitled to each annual holiday the dates on which the employee takes the holidays the amount of money paid for each holiday the amount of money paid to the employee for annual holidays when the employment ends. These records can be incorporated in the wages and time records which employers must also keep. Employees and their representatives and Labour Inspectors have the right to see these records. 60 CHAPTER 2 MAINTENANCE

60 Relevant daily pay MYOB Payroll includes a calculation of relevant daily pay. To access this calculation window, go to the Prepare Pays command centre, click on Enter Pays, double-click an employee and click the Leave button. Then click the ellipsis beside the normal pay rate showing for alternative holidays. This window allows you to change the rate used for paying alternative holidays (or leave in lieu), bereavement or sick leave. Click the ellipsis to change the relevant daily pay. The rate used must be the greater of the relevant daily pay amount specified in the employees' employment agreement or what they would have earned had they worked that day (using the Based on earnings method). If the Based on earnings method does not show a clear relevant daily pay, then the average daily pay calculation can be used instead. Average daily pay is based on earnings from the last 52 weeks, divided by the number of days worked. (Note that prior to 1 April 2011, average daily pay was based on earning from the last four weeks.) The number of days worked is an estimate based on the employees leave settings; it can be edited to adjust the calculation. Sick leave By law, after working for the same employer for six months, an employee has the right to five days paid sick leave for each subsequent 12-month period. Sick leave can be used by an employee for any of the following: sick leave domestic leave to care for a sick spouse, dependent child, or dependent parent of the employee, or of the employee's spouse Unused sick leave can be carried over into the next year, up to a maximum of 20 days (including the current year s entitlement). Employment agreements can have more sick leave than provided for by law. They must not provide for less. Employers and employees or unions can also agree that other types of paid or unpaid leave will be included in the agreement. Time off In lieu A time off in lieu (TOIL) pay code is used to track time off in lieu, as distinct from alternative holidays tracked in the Other Leave tab for an employee. If the TOIL code is added to the default pay setup for an employee, any hours over the standard pay default hours (such as 40 hours) worked are credited to the TOIL running total, and any hours under the pay default standard hours worked are deducted from the TOIL total to make up the standard hours (for example, if only 38 hours are worked, then 2 taken from TOIL to make up the standard 40). The TOIL pay code can be overridden in the Enter Pays window. PROCESSING EMPLOYEE LEAVE 61

61 Unpaid leave When an employee takes unpaid leave of more than a week during the year, this can be managed in three ways: The employer can choose to extend the time required before the employee becomes entitled to annual holidays by the period of unpaid leave in excess of one week. The employer and employee can agree that an employee's average weekly earnings calculation will be modified to reflect the number of whole or part weeks greater than one week that the employee was on unpaid leave. The employer and employee can agree that the unpaid leave will have no effect on the employee's annual holiday entitlement. Time while an employee is on ACC, parental leave or leave for voluntary military service does not affect the anniversary date for annual holiday purposes. Enforcement of holiday and leave rights Employees (or their unions or representatives) can find out about enforcing any rights for leave under the law or their employment agreements by contacting Employment Relations Infoline. Statutory rights to annual leave, public holidays and special leave can be enforced by the Labour Inspectors. They may investigate complaints and act to recover any money owing to employees. Glossary (see also the Glossary on page 105) Term Alternative Holiday Annual leave Annual Leave pay Annual Leave rate Average weekly earnings Bereavement Leave Holiday Pay Ordinary weekly pay Explanation Previously known as Leave-in-lieu, this is a day off given to an employee who works a Public Holiday. Payment is at the employee s Relevant daily pay. An entitlement to at least four weeks paid leave after working continuously for the same employer for 12 months. What an employee is paid when on annual leave. Entitlement falls due after 12 months employment. Can be taken in advance. Outstanding annual leave will be paid out if employment is terminated. The greater of the employee s average weekly earnings or ordinary weekly pay is used to calculate what an employee is paid while taking annual Leave. If this method does provide a clear picture of their average pay, then an average of the last four weeks earnings can be used. Average weekly earnings are determined by calculating gross earnings over the 12 months prior to the end of last payroll period before the annual holiday is taken, and dividing that figure by 52. (Note that prior to 1 April 2011, this was based on earning from the last four weeks.) Previously included with Special Leave, this is now a separate entitlement. All employees are entitled to three days paid leave (after six months service) when they suffer the loss of an immediate family member. This leave does not need to be used immediately or on consecutive days. One day paid leave for a bereavement suffered outside of the immediate family (at the employer s discretion). Payment is at the employee s relevant daily pay. An accrual of leave based on a percentage of the employees gross earnings. May be paid to casual employees or when preparing a final pay. Ordinary weekly pay represents everything an employee is normally paid weekly, based on their pay defaults or normal pay (normal time x normal pay rate). 62 CHAPTER 2 MAINTENANCE

62 Term Public Holiday (Statutory Days) Relevant daily pay Sick Leave Special Leave Time-and-a-half Explanation Officially recognised days that employees are entitled to paid leave on, if it is a day they normally work. This is in addition to their annual leave entitlements. This is the amount an employee is paid when taking Sick or Bereavement Leave or working a Public Holiday. This amount is usually specified in the employment agreement and is basically what the employee would ve received had they worked. If unclear, an average taken from the last 52 weeks earnings may be used. (Note that prior to 1 April 2011, this was based on earning from the last four weeks.) Previously included with Special Leave, this is now a separate entitlement. All employees are entitled to a minimum of five days Sick Leave a year (after six months service), accumulating to a maximum of 20 days. Payment is at the employee s relevant daily pay. This entitlement was made obsolete with the introduction of the Holidays Act Any outstanding Special Leave entitlement will be converted to Sick Leave. The increased minimum payment for employees working a Public Holiday. For example, if the employee is paid an hourly rate, then he or she is entitled to one-and-a-half times that rate for the time worked on a public holiday, as in the following clause: The pay rate for this position is $12 per hour. For time worked on a public holiday, the pay rate is $18 per hour (time-and-a-half). Maintaining Accumulators Accumulators are useful for keeping track of extra information relating to the quantities (units) of one or more employee pay codes. For example, you may want to keep track of an increasing total of fruit bins picked for a season or a decreasing total for a staff loan. Add an accumulator called BINS. Assign it to the relevant pay code then add it to the employee. When the next pay is processed the total quantity of bins entered when calculating the pay will be recorded against the employee. Subsequent bin quantities will be added to this total. To open the Maintain Accumulators window, select Maintain Accumulators from the Payroll menu. MAINTAINING ACCUMULATORS 63

63 To add an accumulator 1 From the Payroll menu, choose Maintain Accumulators. The Maintain Accumulators window appears. 2 Click New. The New Accumulator window appears. 3 Enter a code and a description. The description will appear on the employee s pay slip (if this option is selected for the employee). 4 Click OK. To delete an accumulator You can only delete an accumulator if there are no active pays and the accumulator is not being used by any employees. 1 From the Payroll menu, choose Maintain Accumulators. The Maintain Accumulators window appears. 2 Select an accumulator and click Delete. A confirmation message appears. 3 Click Yes. To use an accumulator 1 Add an accumulator (see To add an accumulator above). 2 Go to the Maintenance command centre and click Maintain Pay Codes. 3 Add or edit a pay code for which quantities need to accumulate. 4 Click the Accumulator tab and specify the accumulator to which any quantities paid using this pay code will accumulate. See Accumulators tab on page Go to the Maintenance command centre and click Maintain Employees. 6 Select a relevant employee 7 Click the Pay Defaults tab and add the relevant pay codes to the pay defaults. See Pay Defaults / Totals tab on page Click the Accumulator tab. 9 Enter a current balance (if applicable) and specify if the current balance will print on the employee's pay slip. See KiwiSaver Eligibility flowchart on page 52. Example of how accumulators can be used If an employee is entitled to one week (40 hours) of Long Service Leave. 1 Create the accumulator LSL, (Long Service Leave). 2 Create a pay code called LSL, (Long Service Leave). This enables employees to be paid long service leave, based on the employee's normal pay rate multiplied by 1. On the Accumulators tab, specify the LSL accumulator. Specify that it is to decrease so that the balance of LSL is reduced when some LSL is paid. 3 Add the LSL pay code to an employee s pay defaults. 4 Add the LSL as an accumulator for the employee. Specify the balance due to the employee and mark to show the balance on the pay slips. 64 CHAPTER 2 MAINTENANCE

64 3 Preparing pays This chapter describes how to import, enter and print timesheet details, calculate default pays, enter pay details and print pay slips. Overview The Prepare Pays command centre provides all the options associated with entering pay details. You only need to complete the tasks relevant to your business. To do this See Import timesheets page 66 Enter timesheets page 67 Print timesheets page 68 Calculate default pays page 69 Enter pays page 70 Print pay slips page 74 65

65 Importing timesheets Timesheets can be imported from any other system that creates a file in the correct format. The file must be a comma-delimited type, which can be easily created from Microsoft Excel by using the Save As option, or by exporting in this format from other timesheet software. Detailed specification about the file format required are described in the F1 help topic Import timesheets. To import a timesheet 1 Go to the Prepare Pays command centre and click Import Timesheets. The Import Timesheets window appears. 2 Locate the file you want to import by entering a valid file path, or use the ellipsis [ ] to search for the file. 3 If the import file contains pay codes that are not currently set up as pay defaults for the employees you are importing for and you want these pay codes added to the employee s pay defaults then select the Automatically create a pay default if a pay code is invalid for an employee option. If this option is not selected, then errors are generated for any lines with non-default pay codes. 4 Click Import. The import file is read and checked for errors. Errors include invalid employee codes, pay codes, departments, dates or quantities. If errors are found, you are prompted to print a report of the errors, and given the option to abandon the import (to go back and correct the original file) and re-import, or to accept the import excluding any errors. If a file is imported successfully, it is renamed with a new file extension (for example, the first file will have an extension of.001, the second with.002, etc. These historical files can be imported again if needed). 5 After the timesheet lines have been imported they can be viewed, edited or deleted in the Enter Timesheets window. 66 CHAPTER 3 PREPARING PAYS

66 Entering timesheets You can enter timesheets directly in your software using Enter Timesheets. You can also use this function to edit or delete imported timesheet details. You might enter timesheets when: an employee s recorded time appears on more than one source document a number of employees require their pays to split across multiple departments times are entered on a part period basis (For example, daily for a weekly pay or weekly for a fortnightly pay). Timesheet entry options Prompt for Department/Costcentre Select to override the employee s default department/cost centres. Prompt for date The date defaults to the current pay end date, displayed at the bottom right of the payroll screen. Select to enter specific dates. Default new entries to the previous entry Select to repeat the employee code and pay code (and Department/Costcentre codes if Prompt for Department/Costcentre is selected). This may be useful if you have a lot of timesheet information for the one employee, or the same pay code or the same department/cost centre. Enter timesheets by batches Select to keep groups of timesheet entries together. All entries can be viewed by selecting their batch number or select zero to view the complete list. To add a timesheet entry 1 Go to the Prepare Pays command centre and click Enter Timesheets. The Enter Timesheets window appears. 2 Click New. The date appears by default. ENTERING TIMESHEETS 67

67 3 In the Employee column, press F9 or TAB and select the employee. 4 In the Pay Code column, press F9 or TAB and select the required pay code. 5 In the Quantity column, enter the unit amount for the pay. 6 Click New to add a new timesheet entry. 7 Repeat from step 3 for each employee. 8 Click Close. To edit a timesheet entry Locate and select the transaction line and change the details as required. NOTE : Override employee defaults (Pay Default Totals tab). Timesheet entries will override the employee s default quantities set up in Maintain Employees To delete a timesheet entry There are two ways to delete a timesheet entry. Select the timesheet line you want to delete and then click Delete. Select Delete All to clear all timesheet information from the selected batch if the Enter timesheets by batches option is selected, otherwise timesheet entries from all batches will be deleted. Print timesheets You can print a report that shows all the timesheet entry information for employees. You can print this report by employee or by batch. To print timesheets 1 Go to the Prepare Pays command centre and click Print Timesheets. The Print Timesheets Details window appears. 2 Select how you want to view the report information: by employee or batch. If you select batch, the report will print by batch number, and then by employee code. 68 CHAPTER 3 PREPARING PAYS

68 3 Select what information you want to include in the report and click Next. 4 Select the employees you want to view information for and click Next. 5 Click Preview to display the report on screen, or click Print. Calculate default pays Calculating default pays is a quick way to prepare standard or normal pays for your employees based on the payroll details you have set up for them. (see Pay Defaults / Totals tab on page 46). Pay defaults are useful if most of your staff are paid the same each pay period. But if the pays for most of your employees varies from pay to pay, you may choose not to use this option. To calculate default pays 1 In the Prepare Pays command centre, click Calculate Default Pays. The Calculate Pays window appears. 2 Choose a pay frequency: Daily Weekly Fortnightly Half Monthly 4 Weekly Monthly Annually Variably 3 Weekly Timesheets Note that if the Timesheets frequency is chosen, only those employees for whom timesheet details have been entered will be calculated (whatever their pay frequency). 3 If you want to calculate another pay frequency, repeat this procedure. CALCULATE DEFAULT PAYS 69

69 Enter pays Enter pays is the main method of entering pay information. It is used for reviewing and modifying pays prepared using the Calculate Default Pays option and for preparing pays directly. Once a pay has been prepared (entered or calculated) for an employee, an X is displayed in the Active column and the pay is referred to as an active pay. To enter (prepare or activate) an employee s pay, either select the employee or double-click the employee. To edit pay details 1 Go to the Prepare Pays command centre and click Enter Pays. The Enter Pays window appears. 2 Double-click the employee to enter (prepare or activate) an employee s pay. The Enter Pays Details window appears. A standard pay is calculated based on the employee s defaults (see Pay Defaults / Totals tab on page 46). If any timesheet details have been entered, these are included in the calculations. 3 Enter or amend the quantities and rates as required. As soon as a quantity or rate is entered, the pay is recalculated. If the message Cannot change quantity of Split appears, it means that timesheet entries are present for that pay default. 4 Click the Split Pay button to view, edit, add or delete these entries. Type P indicates this a permanent pay split, set up in the Split Default window for the employee. Type D indicates a pay split entered through a timesheet. You can create a split for a future date, such as pre-approved leave for a future date, which won t be included in the current pay. Type T indicates a temporary pay split, that is, a pay split for the current pay only. A temporary pay split can only be entered in the Enter Pays window. Use the other buttons, as described below, for additional functions. A function key can also be used as an alternative to clicking a button. All changes are provisional until the pay has been finalised. 70 CHAPTER 3 PREPARING PAYS

70 NOTE : Enabling function keys The following function keys are enabled when the cursor is in the Quantity column or certain conditions are met. If a function key does not seem to be responding, try re-positioning the cursor or see the table below for any special conditions. Function OK or Esc F2 - Leave F3 - Tax Override F4 - Add Default Leave Super F5 - Message F6 - Split Pay F7 - Print F8 - Clear Pay What it does When the pay is correct, press Esc or click OK to save the changes and return to the employee list. The employee will be marked as active, showing that a pay has been prepared for that employee. Press F2 or click Leave to display the Leave Due window, showing the current leave due to the employee. This is useful for preparing an employee's final pay (for example, paying out the balance of annual leave and leave in lieu), or for checking the amount of leave in advance the employee has accrued. Note the figures displayed do not take into account any figures entered for the current pay. The tax override button is enabled when you select the Rate column for the TAX pay code default. Press F3 or click the Tax Override button to display the Pay Frequency/Tax Override window. The Pay Frequency/Tax Override window enables you to adjust the pay to be taxed over a period other than the employees default pay frequency, or by using a different tax code. For example, an employee normally paid weekly is being paid for the last week worked plus 11 days annual leave and 4 days public holiday at Christmas. The pay would be taxed over 4 weeks instead of the usual 1 week. If an employee is being paid an extra lump sum payment, (for example, a bonus), the payment needs to be taxed using a secondary tax code (S, SH, or ST). These extra amounts can be taxed separately using the Extra Pay Amount field. Press F4 or click Add Default if a new pay default is required for the employee and the pay code has already been created. Select the required pay code. In the window that appears, enter the default quantity, if required, and the default rate if allowed. Specify if this new default is regular or variable (See Pay Defaults / Totals tab on page 46). Click OK. If a new pay default is added by mistake it will need to be deleted from Pay Defaults window. Click Leave to view how the annual leave is calculated, the balance of the current leave due to the employee prior to the current pay and from here you are able to override the divisor to adjust the number of weeks worked by the employee. You can also select the relevant daily pay calculation. Click Super to view KiwiSaver super contributions and any other employer superannuation calculations. This window displays employee and employer contributions, and employer superannuation contribution tax (ESCT) calculated for the pay entered. The net contribution is the employer contribution less any ESCT. Press F5 or click Message to add a message that will print only on this employee's pay slip. If you want the message to be printed every pay, select the Keep this message for each pay option, otherwise the message will be cleared when the pay is finalised. This option is only active for earnings pay defaults (gross earnings, taxable allowances and non-taxable allowances). It enables earnings to be allocated to department/cost centres other than the employee's (or the pay code's) default. If timesheet details have been entered they can be viewed, edited, deleted or added. Enter a department/cost centre or press F9 to select from a list. Enter the appropriate quantity. Repeat as required. Press F7 or click Print to preview or print a copy of the pay slip for the employee. The Print Pay Slip report wizard is displayed. See Print Pay Slips on page 74. Press F8 or click Clear Pay to clear all details for this pay and return to the employee list. The employee will not be marked as active. ENTER PAYS 71

71 To prepare a one-off pay Occasionally, an employee may receive a one-off pay such as a commission or bonus payment. Rather than zero the employee s defaults manually, MYOB Payroll provides an easy way to clear the pay defaults. 1 Go to the Prepare Pays command centre and click Enter Pays. The Enter Pays window appears. 2 Double-click an employee s record. The Enter Pays Details window appears. 3 Click Clear Defaults. The default quantities are zeroed, however any imported or entered timesheet information will be retained. 4 Proceed to enter details of the one-off pay. One-off payments are usually taxed differently. For information on using the Tax Override feature to calculate the tax on these amounts, see page 71. NOTE : Editing an employee s notes clicking the Notes button. The employee s notes (Maintain Employees > Qualifications & Notes tab) can be edited by Preparing final pays When employment ceases, a final pay must be prepared for the employee. This must include any outstanding leave. MYOB Payroll does all the hard work for you by automatically calculating final pays. If the employee s finish date is known in advance, it can be entered in the Employment will finish on date field on the Employment Details tab in the Maintain Employees window, see page 44. To calculate a final pay 1 Go to the Prepare Pays command centre and click Enter Pays. The Enter Pays window appears. 2 Double-click an employee record. The Enter Pays Details window appears. 72 CHAPTER 3 PREPARING PAYS

72 3 Click Final Pay. The Final Pay Details window appears. 4 Enter a finish date and reason. 5 Click OK. Holiday pay is calculated on any outstanding annual leave. An employee is also paid for any public holidays that fall in the period of annual leave owed. For example, if the employee is owed two weeks annual leave, and two public holidays fall within those two weeks, you need to adjust their final pay accordingly. The employee s pay details have now been updated and it has been tagged as a final pay. 6 If you need to adjust the tax rate for the correct number of weeks, click Tax Override. For more information, see page Continue processing the payroll as per usual. The employee s pay slip will show any outstanding leave as being paid out (or deducted if in arrears). ENTER PAYS 73

73 To delete all active pays Click the Clear all Pay Details button in the Enter Pays window. This will not delete timesheet information or default pay settings. Print Pay Slips To print pay slips You can print or preview pay slips for any employee with a current, active pay. You can also pay slips (attached to an as a PDF file), instead of printing them (See Pay Slips, page 75). 1 Go to the Prepare Pays command centre and click Print Pay Slips. The Print Pay Slips window appears. 2 Select the employees for whom you want to print payslips. If you only want a few, use the Select None option and select the applicable employees. 3 Click Next. Add a common message on the pay slips, if required. 4 Click Next. The Settings step appears, see To pay slips, page Click Next. Choose your printer type. If you are using secure pay slips to be printed using your inkjet or laser printer then select the A4-Secure option. 6 Click Preview to view on screen or Print to send the report to the printer. 74 CHAPTER 3 PREPARING PAYS

74 Pay Slips Pay slips can be ed in a PDF format using your current settings. An Pay Slips option is available in the Personal Details tab of an employee s record (Maintenance Command Centre > Maintain Employees). You can also specify a reply address and a message for all recipients. Before you can pay slips from MYOB Payroll, you need to specify your ISP s SMTP server (see Common SMTP servers, page 76) and be connected to the Internet. To setup an employee for ing pay slips 1 Go to the Maintenance command centre and click Maintain Employees. 2 Select an employee and click the Personal Details tab. 3 Enter an address (if there is not one already) and select the Pay Slips option. To pay slips You pay slips at the same time as you print them. 1 Go to the Prepare Pays command centre and click Print Pay Slips. 2 Complete the required steps. 3 At the Settings step, enter the relevant details. 4 Click Next to proceed and continue the steps to print and pay slips. 5 When you have finished, a report will be displayed showing which pay slips have ed successfully and which have failed. PAY SLIPS 75

75 Firewall Settings Firewall settings may prevent applications such as MYOB Payroll from sending outgoing s. If you encounter interference from your firewall when ing pay slips, you may need to modify the rules or exceptions that control blocked applications and allow MYOB Payroll. Check the documentation for your operating system for details on how to do this. Common SMTP servers The following is a list of the main ISP s and their SMTP servers. Xtra (smtp.xtra.co.nz) ClearNet (smtp.clear.net.nz) Paradise Net (smtp.paradise.net.nz) Actrix Networks (mail.actrix.co.nz) Netlink (mail.netlink.co.nz) EzySurf (smtp.ezysurf.co.nz) IHUG (smtp.ihug.co.nz) Iprolink (smtp.iprolink.co.nz) SouthNet (smtp.southnet.co.nz) World-Net (mail.world-net.co.nz) Orcon (mail.orcon.net.nz) Globe Net Communications (smtp.globe.net.nz) Dream Net Internet (mail.dreamnet.co.nz) I4U Internet Services (mail.i4u.net.nz) Slingshot (smtp.slingshot.co.nz) Data Solutions (smtp.datasolutions.net.nz) DSNet Internet Services (smtp.dsnet.co.nz) NOTE : Outlook users accounts. Microsoft Outlook lists your SMTP server under Tools menu > Accounts > View or Change 76 CHAPTER 3 PREPARING PAYS

76 4 Processing pays This chapter explains how you print a pay summary, payment schedules, back up your data and update the PAYE period in MYOB Payroll. It also explains how to finalise a pay run. When you finalise a pay run, the pays entered in the Prepare Pays command centre are recorded in your system. This includes updating year-to-date balances and employee details. To ensure your records are calculations are accurate, you must enter all pay details before you finalise a pay. Overview The Process Pays command centre is used after a pay run has been prepared and checked. In any MYOB Payroll command centre, click Process Pays. The Process Pays command centre appears. You can do the following tasks. To do this See Print payment summaries page 78 Print payment schedules page 79 Backup your data page 79 Finalise the pay page 80 Update the PAYE period page 81 77

77 Which reports should I print? The pay summary and the payment schedules are the recommended minimum reports to print and file each pay. Optional reports include: Cost Analysis reports for accounting or cross-checking purposes Deductions report Non-Taxable Allowances report Employer Superannuation report. These reports can only be printed before a pay is finalised. For more information on reports see Payroll reports on page 83. Print the pay summary report By law, the Pay Summary report must be retained for each pay run. This report lists the details and totals of each employee's pay slip, with totals for the pay run. To print a pay summary 1 Go to the Process Pays command centre and click Print Pay Summary. 2 Select the Print Timesheet details for each Pay Code option if: Timesheet details have not been imported or entered Pay has been split between departments Timesheet Details report has not been printed. 3 Click Preview to view on screen or Print to send the report to the printer. 4 Check the report for any errors. If errors are found, return to the Prepare Pays command centre and make the necessary corrections. Reprint the affected pay slips and the pay summary. If no errors then print and file. A pay summary report must be printed before the pay can be finalised. it is recommended that the final pay summaries are filed in sequential order in a payroll file. If there are numerous timesheet entries or split pays, we recommend you print a Timesheet Details report from the Prepare Pays command centre, see Print timesheets on page CHAPTER 4 PROCESSING PAYS

78 Print payment schedules This report prints a schedule of cash pays together with a cash breakdown for the bank (if any employees are receiving cash for the current pay). A schedule of cheques to write and a schedule of direct credits are also printed. Most banks require the direct credit information to be transferred onto the schedules they provide, if the direct credits are not electronically sent to the bank. To print payment schedules 1 Go to the Process Pays command centre and click Print Payment Schedules. 2 Click Preview to view on screen or Print to send the report to the printer. Backup Back up the payroll data before finalising so that if you find errors in the pay, or your data becomes corrupted, you have a restorable backup. It is recommended that you regularly save a backup to an external drive (such as a USB drive) or a CD. To backup your payroll data 1 Go to the Process Pays command centre and click Backup. The Backup Up Payroll Data window appears. PRINT PAYMENT SCHEDULES 79

79 NOTE : Multiple backups to the same disk or folder Each backup created has a unique name, which means multiple backups can be made to the same location. The filename format is MYOBPayroll followed by the payroll name then the date and time (e.g. MYOBPayrollBackup-Clearwater zip). 2 Click the ellipsis button to open Windows Explorer and choose where you are going to save the backup. If you are backing up to another drive on your network, navigate to the network folder. If you are backing up to an external drive, navigate to the drive. Click OK when you are ready to proceed. 3 When successful, a message appears confirming your data has been backed up. For a full explanation on the backup procedure see Backing up and restoring your data on page 96. Finalise the pays When you finalise a pay, the pay details entered in the Prepare Pays command centre are recorded in your system. This includes updating year-to-date balances and employee details. It also includes clearing the details of the current pay. You must finalise pays to record the pay details in your system and to prepare your payroll for the next pay run. To ensure your records are calculations are accurate, you need to enter all pay details before you finalise a pay. You can edit or clear a pay before it is finalised. However, once finalised, it can only be reversed by restoring from an earlier backup, see Backing up and restoring your data on page 96. Pay periods Ensure the current PAYE period, the current pay ended date and number of active pays (employees being paid) are all correct. If these are not correct, click Cancel and make any needed changes (see Change the PAYE period on page 81). The correct PAYE period is the one in which the wages are actually paid and may be different from the one in which the pay ends. NOTE : Bank holidays To deal with bank holidays, e.g. the Christmas and New Year period, you can send the files to the bank early. Set the paid on date to be the week that the pay is for. 80 CHAPTER 4 PROCESSING PAYS

80 Direct credit files If the payroll has been set up with a path for the direct credit files and a bank account number, the direct credit files are created when you finalise the pay. The default direct credit details are displayed on the Finalise Pay window but can be changed if required. See Direct Credit Path on page 23. NOTE : Consult your bank and F1 online help for specific information There may be specific details required in these fields for your particular bank setup. Additional information can be obtained by pressing F1 or contacting your bank. To finalise the pay Click OK in the Finalise Pay window. This will create the direct credit files, update employee records and clear the current pay. To cancel the finalising process, click Cancel. Integration to your accounting software When you have finalised your pay, payroll journals are created if you are posting manually to your accounting software, or are posted automatically into your MYOB AccountRight software, if you have selected to do that. You may be prompted to Include Costcentres as Job Codes in Journal entries. Select this option if required. See Accounting System on page 22 for more information. Change the PAYE period You use Change PAYE Period feature to manually update the current PAYE period to the next (or previous) PAYE period. This is usually used after the last pay for the month (or half month if a large employer, see General details on page 21). If this step is missed, when the next pay date is entered you will be automatically prompted to update the PAYE period. To update the PAYE period Click OK to proceed with the update. If the new period is the next month, you will be prompted to print the employer monthly schedule. After this report is printed you will be prompted to print the IRD remittance advice. To reverse the PAYE period Select Reverse PAYE Period to return to a previous period. CHANGE THE PAYE PERIOD 81

81 82 CHAPTER 4 PROCESSING PAYS

82 5 Reporting This chapter explains how to generate reports to monitor your payroll, satisfy legal compliance and meet IRD requirements. It also explains how you can export pay history to be analysed in other software applications, such as a spreadsheet. Payroll reports MYOB Payroll uses wizards to help you prepare reports. To produce reports, you simply work your way through the wizard and click Preview or Print to view the finished report. See Printing options on page 84 and Printer properties on page 85. To select a report You can access reports via: The Reports menu this gives a full list of reports which are employee balance-related, and those printed after finalising pays. The Payroll menu this gives a full list of reports which directly relate to the current pay in progress. Command centre reports In previous chapters, we have shown you how to access the following reports related to preparing and processing payroll. See: To print timesheets on page 68 To print pay slips on page 74 To print a pay summary on page 78 To print payment schedules on page

83 Printing options MYOB Payroll allows you to print and preview a wide variety of payroll information. Some of the following options may not be available on all print screens. Apart from the Print button, these options will first generate a preview on screen. Click Print on the preview to send the report to your printer. File menu Select Print from the File menu. This option will only be available when the screen that has focus is able to be printed. Keyboard shortcut Press Ctrl+P to print the currently selected screen. Print button On the report options screen, click this button to send the report to your printer. Preview button Available from the report options screen, this button firsts displays the report on the screen. From the preview window send it to the printer by clicking the Print button. Employee filter Many of the available reports allow you to choose which employees you wish to include in the report. The employee are listed alphabetically and can be selected for inclusion individually, by clicking the select checkbox next to a name. Alternatively, use the Select All or Select None buttons. If you only wanted to select one employee then click the Select None button and then click on the employee you want to report on. Click Finish or Next to proceed to the next step of the report wizard. 84 CHAPTER 5 REPORTING

84 Printer properties When you click the Print, or select Page Setup from the File menu, a Windows Printer dialog box appears. You can choose a different printer or set printer properties from here. Select the printer you want to use from the drop-down list. Click Properties to change printer settings such as print quality and colour options. Available reports To make the best use of the available reports in MYOB Payroll, it is helpful to know which reports to print and when. The table below describes several payroll reports. For more detailed information, refer to Additional report information on page 86. Report When to print Description IRD Remittance Advice End of each PAYE Period This report contains all the required information to fill out the IR345/346 forms (PAYE payments). Employer Monthly Schedule (IR 348) Pay Audit Trail Pay Code Totals Holiday Accruals End of each month End of year (recommended) End of year (recommended) End of year (recommended) This contains all the start/finish, child support, student loan and the earnings details of all employees for the chosen month. Lists each pay that has been finalised, grouped by PAYE period, showing totals for each type of pay code. Summarises the year to date figures for each pay code. Prints the current annual leave and holiday pay balances for each employee. Apprentice Hours When required Prints details of those hours worked as apprentice hours by your employees. Employee Statistics When requested by Statistics NZ Details the gender and employment status of each employee. Department List When required A simple report showing the department/costcentre setup, including the GL integration code. AVAILABLE REPORTS 85

85 Report When to print Description Current Employees When required Shows each employee's (except those with a finish date) start date, tax code and their current pay rates. Maintenance Audit When required All changes made to employees, pay codes and department/costcentre including when a pay is finalised, when holiday anniversary updates occur and when the payroll is backed up or restored. Period Reports When required Analyse your pay history, according to a variety of different criteria. Additional option to export as a spreadsheet file, see page 91. Employee Addresses When required List of all employees and their current addresses, phone and fax numbers, allocated department/costcentre and start date. Employee Balances When required List of employees and their current payroll balances. Employee Audits End of year (optional) Full pay history for each employee. Employee Holidays End of year (optional) Summary of the employee s leave details to date. Employee Sick Leave End of year (optional) Summary report of the employee s sick leave details. Employee Leave in Lieu End of year (optional) Summary of employee s leave-in-lieu information. IRD Schedule End of year Two copies printed; one filed and one attached to the IR68A. Earnings Certificate End of year or when employee finishes These replaced the IR12 certificates in March PAYE Subsidy Claim When required Only available to registered payroll intermediaries ( [email protected] for more information) Additional report information The following reports can be previewed to screen or sent to the printer of your choice. See Printing options on page 84 and Printer properties on page 85. NOTE : Current pay details Until a pay is finalised, the current pay details are not reported on. IRD Remittance Advice This report contains all the required information to fill out the IR345/346 forms. Simply transfer the information across to the official form and include with your PAYE payment (20th of month for small employers, 5th & 20th of month for large employers). TIP : Create all IRD reports and files easily Select the Create IRD reports option in the Reports menu to print the IRD Remittance Advice, Employer Monthly Schedule, and to create the direct credit file and files for ir-filing. 86 CHAPTER 5 REPORTING

86 Employer Monthly Schedule (EMS) (IR 348) This contains all the start/finish, Child Support, Student Loan And the earnings details of all employees for the chosen month. This prints automatically when a PAYE period is updated to a new month but is also available from the Reports Menu. The IRD will not accept a summary format EMS. The details must either be: transferred electronically to the IRD by sending the csv file, which is optionally created when this report is printed manually input into the ir-file website and transferred electronically to the IRD printed in the IRD Approved Format and posted to the IRD (mark the checkbox after selecting the Employer Monthly Schedule). See the IRD booklet on ir-file (IR343) for more information. The created csv files are stored in your ir-file folder, specified in Options, see Accounting integration details on page 22. Sending KiwiSaver details to the IRD A KED (KiwiSaver Employee Details) file is created when the Employer Monthly Schedule (EMS) is produced and can be ir-filed electronically to the IRD along with the EMS. This file includes the required KiwiSaver employee information, as well as details of those who opt-out. Also created is a zip file containing all the relevant EMS, KED and EDF files for ir-filing. This is particularly useful if you run multiple payrolls. Pay Audit Trail The Payroll Audit Trail report lists each pay that has been finalised, grouped by PAYE period, showing totals for each type of pay code. the details listed for each pay are the same as the total line from the pay summary. Use this report to check that all pays have been finalised and that the overall totals are correct. Pay Code Totals The Pay Code Totals report summarises the year to date figures for each pay code. Each pay code's default rate, the amounts for the last pay and the month to date and year to date amounts are displayed. The pay codes are grouped by pay code type. In other words, all gross earnings pay codes are printed first and are totalled, then taxable allowances, etc. There is an option to print each pay code type on a separate page. Holiday Accruals The Holiday Accruals report prints the current annual leave and holiday pay balances for each employee. We recommend this report is printed at the end of each month, with a copy provided to your accountant at the end of the financial year. It shows the total liability for annual leave and holiday pay. Apprentice Hours This report prints details of those hours worked as apprentice hours by your employees. Information from this report is taken from the apprentice hours accumulator, see Maintaining Accumulators on page 63. ADDITIONAL REPORT INFORMATION 87

87 Employee Statistics Usually, you would print this report when the details are requested by Statistics NZ. The report details the gender and employment status of each employee (such as full-time, part-time etc.). You can select to have the employee's names showing on the report if you want. Department List Displays the department and costcentre setup, including any general ledger code integration details. Current Employees The Current Employees report prints all employees that are set up. It excludes any employees with a finish date. The report shows each employee's start date, tax code, and their current pay rates. Maintenance Audit The Maintenance Audit report is a useful tool in finding information about your payroll s history. All changes made to employees, pay codes and department/cost centres are captured as well as information when a pay is finalised, when holiday anniversary updates occur, changes to leave details and when the payroll is backed up or restored. The information captured includes what record was changed, by whom and when, as well as the old value and the new value. Period Reports Period reports let you analyse your pay history for specified periods, according to a variety of different criteria, including the following: Employee Superannuation Employee/Pay Code (Summary Report) Department/Costcentre/Employee Department/Costcentre/Pay Code Department/Costcentre/Month. In the report wizard that appears when you prepare these reports, you can choose which pay history periods you want to include. For example: 88 CHAPTER 5 REPORTING

88 Export Pay History To export a pay period as a CSV (comma delimited) file, go to the Reports menu > Period Reports > Export Pay History. After making your filter selections and choosing a destination for the CSV file, click Export. See Exporting pay history information on page 91. Employee Addresses Use this report to print a list of all employees and their current addresses, phone and fax numbers, allocated department/ costcentre and start date. Employee Balances This will print off a list of employees and their current balances in the payroll system. You can choose to print or preview the full list (includes a breakdown of their individual pay codes), or a summary (one employee per line report). Employee Audits The Employee Audit Report prints the full pay history for each employee. You can select how many employees you want to include in the report. The report prints each employee in turn, with a breakdown of the PAYE periods and amounts finalised to date. This report can be very long if all employees are selected. Employee Holidays This report prints a summary of the employee holidays to date. It prints one employee per page, and reflects the annual leave and holiday information contained in Maintain Employees, Leave Details tab, with a breakdown of the leave taken and any manual changes made. Employee Sick Leave The Sick Leave report prints a summary report of the employee sick leave entitlement and the sick leave taken. This report also prints one employee per page, and reflects the information contained in Maintain Employees, Leave Details - Other tab, with a breakdown of the sick leave taken and any manual changes made. Employee Leave in Lieu This report prints employee Leave in Lieu information. This report also prints one employee per page, and reflects the information contained in Maintain Employees, Leave Details - Other tab, with a breakdown of the leave in lieu taken or accrued and any changes made manually. Parental Leave Details This report prints parental leave details for each selected employee, including start date, (actual) end date, expected end date, IRD number, normal days per week, ordinary weekly earnings and length employment. Employer Superannuation Reports on all pay Superannuation pay codes, i.e. pay codes which have been set up as employee superannuation contribution codes. (See Super tab on page 36) This will covers all super schemes, including approved and non-approved KiwiSaver schemes. This includes employer and employee contributions, SSCWT, Employer Net amount, Total Contribution less tax, Employer Tax Credit, and Net Employer Contribution. Employee Birthdays This report lists all employees with birthdays falling within a specified month. See Personal Details tab on page 43. ADDITIONAL REPORT INFORMATION 89

89 Accumulator balances Displays the current balance of employee s accumulators. See KiwiSaver Eligibility flowchart on page 52. Reminders Displays active reminders for a given date range. See Reminders tab on page 54. Staff Turnover report Display totals of new staff starting and current staff finishing. It includes occupation and reason-for-leaving details. A summary option is available, which only displays totals. IRD Schedule The IRD Schedule is printed at the end of the year (March). See End of Year Processing on page 99. Earnings Certificate The Earnings Certificates are printed at the end of the year or when an employee finishes. These replaced the IR12 certificates in March Reports for prior years The Employer Monthly Schedule, IRD Remittance Advice, IRD Schedule, Pay Audit Trail and Earnings Certificates reports can all be printed for prior tax years. The default is the current tax year. 90 CHAPTER 5 REPORTING

90 Exporting pay history information For greater flexibility and analysis options, you can export pay history information to a comma-delimited file, which can be opened in most spreadsheet programs. For information on entering pay history, see Entering pay history, page 100. To export pay history 1 Go to the Reports menu, point at Period Reports and choose Export Pay History. The Export Pay History wizard appears. 2 Adjust the filter settings (if required). Continue clicking Next until the last step appears. 3 If you want to change the destination for the spreadsheet file, click the ellipsis button [...] and browse for a new folder. 4 Click Export. If Microsoft Excel is installed on your computer, it will automatically start and open the export file you have just created. If not, start your spreadsheet software and open the export file. EXPORTING PAY HISTORY INFORMATION 91

91 92 CHAPTER 5 REPORTING

92 6 Other functions This chapter includes information about end-of-year processing, protecting and maintaining your data and editing your file preferences. End of year processing There are some functions that need to be performed at the end of each tax year, including a number of reports you will want to print. Make sure you have upgraded to the latest version of MYOB Payroll to ensure you have the correct tax rates. NOTE : Reversing PAYE periods at end of financial year Note that you if you reverse your PAYE period at the end of the financial year, the KiwiSaver rates will not be reversed. If you process a pay run in this prior PAYE period, the KiwiSaver rates will not be correct. Complete the usual end of month tasks when you are transitioning from the last month of the year to the new tax year, such as the CSV file for IR-filing, Employer Monthly Schedule, create journals for posting to your accounting software. Before processing pays in the new year The following checklist outlines the typical tasks you might perform before entering pays in the new payroll year. The reports listed here can be run for any tax year, so you can run them at any time. If you want to implement new departments or pay codes from the start of the tax year, then it makes sense to update these before the first pay of the new tax year. Task Upgrade your software Enter employee finish dates Description You should upgrade your MYOB Payroll software before processing pays in the new year. This is to ensure you have the latest tax rates. If you process pays in the new year without upgrading, you risk taxing your employees at incorrect rates. For more information, contact [email protected] Enter finish dates for employees that are no longer employed with you. All annual leave and holiday pay will need to be set to zero before you can enter the finish date. 93

93 Task Description Print these YTD reports Employee balances Pay Audit Trail Pay Code Totals Holiday Accruals (prints totals as they are now, so should be printed at least monthly) Earnings Certificates: These are not required by the IRD, but we recommend that they be printed so that employees can check the information provided by the IRD. They are designed for printing on letterhead paper. IRD schedule: print this for your records. Note: If you have entered all or part of your Pay History manually through Enter History, this data will not be included in the Gross Earnings/PAYE details of the Earning Certificate. Optional YTD reports. Add any new departments Add any new pay codes The following reports will all print one page per employee. Employee Audits Employee Details Employee Holidays Employee Special Leave Employee Leave in Lieu Add any new departments, and then change the default departments of employees and pay codes if necessary. Delete, or make inactive, any departments you no longer require. Add any new pay codes if required, and delete or make inactive any pay codes you no longer require. Creating accounting journals The Create Journals feature is available if accounting software integration has been setup (see Accounting integration details on page 22) and the departments and cost centres have been allocated a GL account code (account number), see page 31. Although you can assign a specific deduction pay code to departments, (Maintain Pay Codes, see page 34), if no code is specified, a default liability account code (entered in the Options window) is used. Journals are usually required when the wages are posted to several different general ledger codes and multiple department and cost centres have been set up. Use the Create Journals feature when you manually want to post your payroll journals to your accounting software. If you integrate with MYOB accounting software, and you have selected the Automatically post journals into the company file option, you don t need to manually post journals (see Task 3: Set up posting options on page 27). How journals are created A journal is automatically created each time a pay is finalised. The journal contains the accounting details for that pay. The journal is overwritten the next time a pay is finalised. A journal can be manually created using the Create Journals feature on the Tools menu. This feature allows you to create journals for any past pays, within the current tax year. See To manually create a journal on page CHAPTER 6 OTHER FUNCTIONS

94 To manually create a journal 1 Go to the Tools menu and choose Create Journals. The Create Journals window appears. 2 Choose what pays you want to include in the journal and then decide whether to create a separate journal for each pay, a separate journal for each month or one journal for all the pays selected. If you select the Create one journal entry for each pay option, the date of each journal will be the last day of the PAYE period in which the pay was finalised i.e. the 15th of the month or the last day of the month. If you select the Create one journal entry for each month option, the date of each journal will be the last day of the month. If you select the Create one journal entry for all selected pays option, the date of the journal will be the last day of the tax year. This option is usually only used by accountants preparing the annual accounts. To import journals into MYOB Accountants Office 1 Open the ledger that the payroll is integrating with (see Accounting integration details on page 22). Ensure the period covered by the ledger matches with the date of the journals created in MYOB Payroll. NOTE : Importing into other accounting software packages See F1 online help for information on importing into other software. 2 Go to the File menu, choose Import and then choose MYOB Payroll Transactions. Any journals created will be posted to the accounts specified in the integration details or the department setup. Related Procedures Setting up accounting integration, see Accounting integration details on page 22. Adding GL codes to a department and costcentre, see Maintaining departments and costcentres on page 30. Adding GL codes to deduction pay codes, see page 37. To import journals into AccountRight v19 1 In your AccountRight software, go to the File menu, choose Import Data and then choose Transaction Journals. 2 In the Import File Format field, select Comma-separated. 3 In the First Record is field select Data Record. 4 Click Continue. 5 Browse to the Payroll.txt file, which will be located in the folder specified in the Payroll Options > Accounting window. 6 Click Open. 7 Select Match All and click Import. The imported journal can be found in AccountRight as a general journal. CREATING ACCOUNTING JOURNALS 95

95 To import journals into AccountRight v2013 and later 1 In your AccountRight software, go to the File menu and choose Import/Export Assistant. 2 Click Import data and click Next. 3 In the Import field, select Transaction Journals. 4 Click Browse and locate the Payroll.txt file you exported from MYOB Payroll. Click Next. 5 Select the Commas and Data options. Click Next. 6 Match the fields, or click Auto Match to match the fields that have the same names. Click Next. 7 If you want to make a backup of your AccountRight company file, click Back up, otherwise click Import. 8 Click Close. The imported journal can be found in your AccountRight company file as a general journal. Backing up and restoring your data To protect your business information and ensure you have a copy of everything if you need it, you should back up your MYOB Payroll data regularly. We recommend you make multiple backups and store copies off-site. MYOB Payroll enables you to create a compressed backup version of your payroll file (known as a.zip file) which can be copied to a network location or an external storage device such as a DVD or memory stick. We also recommend that you perform repairs on your file before you back up. This may fix errors in the file you may not be aware of. See, Repairing the payroll file on page 97. How often should I back up? It s up to you how often you backup your data. However, should your current file become corrupt, and you have to restore your latest backup, you will need to enter everything since that backup was made. In addition to regular backups as you use MYOB Payroll, you might also want to make monthly, quarterly and annual backups. These can also serve as archives for each period, should you need to access data or run a report again. To back up your payroll file 1 Go to the File menu and choose Backup. The Backing Up Payroll Data window appears. 2 Click on the ellipsis button [...] to choose where you want to save your payroll data. NOTE : Backup filename Each backup created has a unique name. The filename format is MYOBPayroll, followed by the company file name, then the date and time (e.g. MYOBPayrollBackup- Company Name zip). This means you can make multiple backups to the same location, such as a network, and know which file is the latest. 3 Click OK. 4 If your backup has been successful the Backup Data window is displayed. 5 Click OK. 96 CHAPTER 6 OTHER FUNCTIONS

96 To restore a backup You can easily restore a backup copy of your MYOB Payroll file. Note that restoring a backup replaces the current payroll file you have open. If you want to retain this version, you need to make a backup of this file before restoring. 1 Go to the File menu and choose Restore. The Restore Payroll Data window appears. 2 Locate your backup file by clicking the ellipsis button (...) to browse for the location. 3 Click OK. The window appears asking you to confirm that you want to restore the file. 4 Click OK to confirm. 5 Click OK when the restore is complete. Repairing the payroll file If you are working on your file and there is a power outage, or your computer suffers damage while your payroll file is in use, your payroll file may become damaged. Repairing your file by rebuilding the index and rebuilding the payroll list can help. To rebuild the index files Index files are used to find or link records in the various databases of the program. In some circumstances, such as a power failure during data entry, index files may become corrupted and need to be rebuilt. If your software displays errors while trying to read payroll files or if transactions which are known to exist cannot be found, then use this option to rebuild the indexes. Go to the Tools menu and Reindex Data Files. The index is rebuilt. To rebuild the payroll list Select this option if you have copied a payroll to your program folder by using Windows Explorer. That way, MYOB Payroll can recognise the payroll file as belonging to its program. Go to the Tools menu and select Rebuild Payroll List. You have successfully rebuilt your payroll file list. REPAIRING THE PAYROLL FILE 97

97 Managing passwords You can use MYOB Payroll without setting a password. However, it is recommended that a password be used if there is the possibility the payroll file may be accessed by other persons. If you need to ensure that only an authorised person should have access to your data, you can specify a password that must be entered before MYOB Payroll can open your payroll file. To create the password You can create a password of up to ten alphanumeric characters. Passwords are not case-sensitive. 1 Go to the Tools menu and choose Change Password. The Change Password window appears. 2 Enter the password you wish to use in the New Password field. 3 Re-enter the same password in the Repeat New Password field and click OK. The following message is displayed. Your payroll file is now password protected. The next time you open this payroll file you will need to enter the password in the Open window. 98 CHAPTER 6 OTHER FUNCTIONS

98 To change the password You can change your password at any time. You can use up to up to ten characters. 1 Go to the Setup menu and choose Change Password. The Change Password window is displayed. 2 Enter the current password in the Current Password field. 3 Enter the new password you want to use in the New Password field. 4 Re-enter the new password again in the Repeat New Password field. 5 Click OK. A confirmation message appears. 6 Click OK. Your password has been changed. The next time try to open this payroll file you will need to enter your new password in the Open window. To delete the password 1 Go to the Setup menu and choose Change Password. The Change Password window is displayed. 2 Enter the current password in the Current Password field. 3 Leave the New Password and Repeat New Password fields blank. 4 Click OK to remove the correct password. 5 When prompted, confirm the password change. The password has been removed. MANAGING PASSWORDS 99

99 Entering pay history MYOB Payroll can use historical pay information to correctly calculate the annual leave pay rate. If converting from an existing system, historical pay information is entered using the Enter History option (available from the Tools menu). Pay history needs to be entered for each employee and for each separate pay they have received in the prior 12 months. It should not be entered as a lump sum amount. This information is only used for the calculation of annual leave and does not appear on PAYE reports. To make it easier to setup existing staff when converting from another payroll system, an option to import pay history or create pay history by replicating an entered pay (up to 24 months) is now included. You can also import pay history from a spreadsheet that has the following format. A spreadsheet template has been provided with your software CD. To import pay history from a spreadsheet 1 Make sure the employee has been added to MYOB Payroll and the employee code is correct. 100 CHAPTER 6 OTHER FUNCTIONS

100 2 Go to the Tools menu and choose Enter History. The Enter History window appears. 3 Click Import. The Import History window appears. 4 Click the ellipsis button to locate the Excel spreadsheet file you want to import. 5 Select the file and click Import. If any errors are encountered, a message will appear giving you the option of viewing the error details. You might need to check that the format used in the spreadsheet is correct and import the file again. To replicate an entered pay Replicating a pay is an easy way to enter history for multiple pay periods for the same amount. 1 Go to the Tools menu and choose Enter History. The Enter History window appears. 2 Enter a pay manually, select it then click Replicate. The Replicate History window appears. 3 Enter the date range you want to repeat this pay for. The pay frequency is based on the employee s settings (Employment Details tab). 4 Click OK. The selected pay will be repeated for the dates entered, where pays are missing. ENTERING PAY HISTORY 101

101 Purge old data If you want to reduce the size of the file you currently work in, you can purge data that you no longer need. This option allows you to optimise your data file by deleting old records that are no longer used, such as ex-employees, inactive pay codes and departments, maintenance records and completed reminders. The process is irreversible, so you need to make a backup of your file before you purge. To purge old data 1 Go to the Tools menu and select Purge Old Data. The Purge Old Data window appears. 2 Set the tax year and click OK. Data up to, and including, the selected year will be purged. Data cannot be purged for the current tax year and two years prior. 3 You will be asked to confirm the data purge. Click Yes to confirm. Consolidate payrolls The ability to consolidate payrolls allows you to combine data from two or more current payrolls into one single payroll. Consolidated payrolls can be used in the following situations: Combining divisions of one company that are in separate payrolls (usually for IR-Filing). When two businesses merge together into one company, to bring all employees into the one payroll. Change of ownership. Information on setting up and using consolidated payrolls is outlined in more detail in MYOB Payroll help. 102 CHAPTER 6 OTHER FUNCTIONS

102 PAYE calculator Select PAYE Calculator from the Tools menu. The PAYE Calculator window appears. Select the appropriate tax code from the drop-down list, enter the period covered and the taxable earnings. The PAYE will be calculated automatically. You can calculate PAYE for previous years as well by changing the year ended date. The list of tax codes will be updated accordingly. Note that when back-calculating PAYE for previous years, the KiwiSaver rates will not be reset. PAYE CALCULATOR 103

103 104 CHAPTER 6 OTHER FUNCTIONS

104 Glossary A account code The account code is what identifies an account. In MYOB Payroll, you can set up integration with a GL account code. An example of an account code is 908/05, which is a subcode of master account 908. There are master accounts and subcodes; the master account is used to group accounts (subcodes) together. ACC The Accident Compensation Corporation (ACC) administers New Zealand's accident compensation scheme, which provides accident insurance for all New Zealand citizens, residents and temporary visitors to New Zealand. In return, people do not have the right to sue for personal injury, other than for exemplary damages; annual leave An entitlement to at least three weeks paid leave after working continuously for the same employer for 12 months. audit trail A list of the changes that have occurred in MYOB Payroll. B back pay A payment given to a person when they receive a back-dated pay increase. Bank Account The number identifying the bank, branch, customer number and account number that payments are made to or from. Bank File A file containing Direct Credit transactions that is transmitted to your bank to pay your people, deductions, superannuation and processing fees. Bank Schedule A report produced with every payroll that lists all payments made from the organisation's bank account. Banking Date The date that the payroll funds are taken out of the company's bank account to pay staff. This is one (working) day before pay day. balance The sum of all the money added to and subtracted from an account. C Casual A person who receives Casual Holiday Pay payments each pay, as opposed to a Permanent employee who accrues an annual leave entitlement. consolidate files Combine two or more payroll compulsory shutdown A specific period where the firm closes, e.g. Christmas/New Year. In these cases, a common anniversary for updating leave entitlements would be used. 105

105 Costcentre Payroll transactions may be charged against cost centres to provide various costing reports to help you manage and analyse payroll costs. CSD Child support is money paid by parents who are not living with their children, to help financially support their children. The scheme is administered by Inland Revenue. D data file This is the file (or, more correctly, the set of files) that stores all the information about the different companies and the transactions your enter for them. Direct Credit An entry in a Bank File. double-entry accounting A method of bookkeeping in which every entry is balanced by another entry. Correct double-entry accounting always provides a balanced set of books; that is, the total value of your asset accounts will equal the total value of your liability and equity accounts. Your accountant s MYOB Accountants Office software uses double-entry bookkeeping. G general ledger This is where your accountant brings all your account information together sales, purchases, cash in, cash out. Your accountant generates your financial statements balance sheet and profit and loss (income) statement from the general ledger. Gross Pay The total dollar value of all payments, including leave, made to a person or included in a payroll. This excludes processing fees and superannuation subsidies. GST Goods and services tax (GST) is a tax on the supply of most goods and services in New Zealand. It is generally charged at a rate of 12.5%. H holiday pay An accrual of leave based on a percentage of the employees gross earnings. May be paid to casual employees or when preparing a final pay. F financial year The 12-month period you use to define your accounting year. MYOB Payroll works in the current financial year. Final Pay A person is given a final pay when they leave the organisation and their personal file is made inactive. I IR344 The Monthly schedule Amendments form required by Inland Revenue to amend schedules for previous months that have already been sent. IR345 The (bi)-monthly return to Inland Revenue providing details of the tax payments made to Inland Revenue. Also see ir346. IR346 For organisations that pay SSCWT. The (bi)-monthly return to Inland Revenue providing details of the tax payments made to Inland Revenue. Also see IR GLOSSARY

106 IR348 The monthly Schedule to Inland Revenue providing details of all employee payments and tax deductions. This can also be filed electronically as an ir-file. IRD Number The Tax Number used by Inland Revenue to uniquely identify every taxpayer. IRD Inland Revenue is the government department responsible for administering New Zealand's tax system; ir-file The electronic return to Inland Revenue providing details of all employee payments and tax deductions. This can also be filed on a paper schedule: the ir348 form. J Leave in Lieu Leave given to a person in Lieu of payment for additional time worked, typically out-of-hours or on a public holiday. Leave Liability of some leave. Leave Taken The outstanding dollar value Leave that a person has used. Leave An entitlement given to people allowing them to take time off work. (For leave-related terms, see also the glossary on page 62) Liability account code The credit side of payroll expense journals, usually the default payroll code set in Options > Integration tab, however can be any tax, deduction or payment pay code. journals A transaction type. In MYOB Payroll, journals can be exported to an integrated GL program. N Net Pay Gross Pay less Tax Deductions. L Large Employer (As defined by Inland Revenue) An organisation that paid over $100,000 in tax payments in the previous tax year. A large organisation makes tax payments bi-monthly. Leave Accrual A calculation performed in every payroll that calculates the proportion of a leave entitlement that is currently due to a person. The entitlement accrues during the year and is given to the person on their leave anniversary. Leave Anniversary The date when a person is given a leave entitlement. Leave Balance The current amount of leave that a person has available to be taken. Leave Entitlement A person's allocation of a particular type of leave. P Pay Day The date that the payroll payments are available in people's bank accounts. PAYE Income tax for salary and wage earners that is deducted by the organisation each payroll and paid to Inland Revenue. Payment Money paid to a person, part of their Gross Pay. Payroll Letter of Credit An agreement between the Organisation and its bank guaranteeing that payroll funds will be available for direct debiting under the Direct Debit Authority. Pay slip Advice to a person providing a summary of their Payments, Deductions and other information for a pay period. GLOSSARY 107

107 S Small Employer (As defined by Inland Revenue). An organisation that paid less than $100,000 in tax payments in the previous tax year. A small organisation makes tax payments monthly. SLD (Student Loan Deductions) Student Loan Deductions are loan repayments made to Inland Revenue by people who borrowed money to pay for their tertiary education. The repayments are on included in the Tax Remittance and Tax Schedule. Sick Leave After working for an employer for a minimum of six months, you are entitled to at least five days paid Sick Leave. Sick Leave can be used for domestic leave (caring for spouse etc.). SSCWT A tax deduction taken from a Superannuation Subsidy. statutory days officially recognised days that employees are entitled to paid leave on, if it is a day they normally work. This is in addition to their annual leave entitlements. Superannuation Deduction A deduction from a person's pay that is paid into a superannuation scheme. Also refer to Superannuation Subsidy. Superannuation Subsidy A benefit, separate to a person's Gross Pay, that is paid by the into a superannuation scheme. T Tax Deduction A deduction made to Inland Revenue. This includes PAYE, SLD, CSD and WT. Tax Payment Tax money paid to Inland Revenue, (as supported by a Tax Remittance). Tax Remittance A schedule providing details of a tax payment to Inland Revenue. Printed on an IR 345 or IR 346 form. Tax Schedule A monthly return to Inland Revenue providing details on individual person's tax deductions. Either printed on an IR 348 schedule or submitted as an ir-file. Timesheet The collection of individual payroll transactions for a person that determines the payments and deductions to be made. Transaction An individual entry on a timesheet that describes the quantity, cost centre, rate and amount to be paid or deducted. W WT Withholding tax is deducted from payments to people who are not employees but work for the organisation on a contract-for-services basis. Y year end The end of your payroll year, e.g. in NZ this is 31 st March. Take Home Pay deductions. Gross pay less all Z Tax Arrears Outstanding money owed by a person to Inland Revenue. zip file A compressed file, that needs to be extracted before it can be used. Tax Code A code that determines what and how much tax is deducted. 108 GLOSSARY

108 Index Symbols *.zip files 96 A ACC definition 105 entitlements 58 accumulators overview 63 adding 64 deleting 64 employee setup 53 setting up pay codes 39 using 64 active pay 70 Alternative Holiday 57 definition 62 analysis using specific liability account codes 37 Annual Leave rate calculating 56 definition 62 apprentice hours report 87 setting up employees 44 setting up pay codes 39 assistance, obtaining 9 Automatic re-confirmation of payroll data file 24 Average weekly earnings definition 62 B backing up the data file 96 backups definition 96 performing 96 *.zip file format 96 bank accounts multiple for single employee 38 Bereavement Leave definition 62 bonus making a one-off payment 72 taxing correctly 71 buttons: definition 15 C Calculate Default Pays overview 69 frequency 69 cash wages denominations 21 checkboxes definition 15 Clear Defaults button 72 Clearwater Ltd, tutorial example 12 columns changing order of 47 command centres definition 13 Maintenance 29 Process Pays 77 compulsory deductions 51 consolidating payroll files 102 contact details alternative 49 next of kin 49 your firm 20 contract reference details 43 converting existing payroll system 16 cost analysis splitting between costcentres 47 using pay codes 37 costcentres 30 adding 31 deleting 31 maintaining 30 split analysis 47 court fine deductions 51 Current Employees report 88 customer support, obtaining 9 D data file definition 26 protecting 26 reindexing 97 restoring from a backup 97 payroll file definition 26 dates employee finish 44 employee start 44 defaults calculating default pays 69 employee pay codes 46 Department List 88 departments adding

109 default department 30 deleting 31 employees default 44 maintaining 30 direct credit configuring 23 setting up pay codes 37 E Earnings Certificate 90 educational resources example company 12 Employee Addresses 89 Employee Audit report 89 Employee Balances report 89 Employee Holidays report 89 Employee Leave in Lieu 89 Employee Sick Leave 89 Employee Statistics 88 employees Accumulators tab 53, 54 adding 42 Annual Leave & Holiday Pay tab 56 bank account 44 code setup 42 Compulsory Deductions tab 51 copying 42 department 44 editing if active pay exists 41 Employment Details tab 44 finish date 44 IRD number 44 Leave Details tab 55 locating 41 maintaining 41 Next of Kin tab 49 Other Leave tab 57 Pay Defaults / Totals tab 46 Pay History tab 50 pay rates 44 Personal Details tab 43 Qualifications & Notes tab 49 tax code 44 Employer Monthly Schedule (IR 348) 87 location saved to 23 employment agreement what to review 58 End of Year processing 93 YTD reports 93 Enter Pays overview 70 adding a default pay code 71 adding a message to the pay slip 71 clear all active pays 74 clearing active pays 71 displaying leave details 71 final pay calculation 72 hotkeys 71 overriding the tax rate 71 printing pay slip 71 splitting for cost analysis 71 Enter Timesheets overview 67 adding 67 deleting 68 editing 68 options 71 EOY see End of Year processing 93 Excel opening pay history in 91 exporting pay history to a spreadsheet 91 exporting payroll journals specifying liability account codes 37 F F1 online help 10 fields: definition 15 final pays overview 72 automatically calculating 72 finalising pays 80 direct credit files 81 GL journals 81 pay periods 80 G general ledger code departments/costcentres 30, 31 getting around MYOB Payroll 13 Getting Started guide 9 H help IRD Assistance 11 online help 10 support website 10 training services 10 help, obtaining 9 history entering pays 100 Holiday Accruals report 87 hotkeys 14 I Import Timesheets overview 66 index files, rebuilding when damaged 97 installation 9 integrating available account codes 31 creating journals 94 departments/costcentres GL code 30, 31 with MYOB business software 26 IRD deductions 51 IRD number employee 44 IRD Remittance Advice 86 IRD Schedule 90 IR-File location saved to 23 ir-filing KED and EMS files INDEX

110 J journals creating 94 importing into MYOB Accountants Office 95 importing into MYOB accounting software 95, 96 K KED file 87 KiwiSaver 51 Employer Superannuation report 89 KED file 87 L learning tools 10 leave overview 55 ACC 58 accruing holiday pay 55 anniversary settings 22 Annual Leave & Holiday Pay tab 56 annual leave entitlement 55 Bereavement Leave 62 casual employees 55 compulsory shutdowns 59 employee finishing 60 employee rights 62 entering annual leave due details 56 general information 58 glossary 62 keeping records 60 Leave-in-lieu 57 manually updating holiday anniversaries 55 Other Leave tab 57 parental leave 57 Parental Leave Details report 89 printing details on pay slips 22 public holidays 60 resources 58 Sick Leave 57 Sick Leave entitlement 57 start and finish dates 45 statutory days 60 Leave rate calculation 59 Leave-in-lieu 57 lists: definition 15 M Maintenance Audit 88 Maintenance command centre 29 menus, using 14 MYOB Payroll exiting 25 launching 11 methods of accessing functions 13 registering and installing 9 MyStaffInfo password-protecting payslips 22 N navigating accessing functions 13 O old payroll converting 16 one-off pay 72 Ordinary weekly pay definition 62 P parental leave 57 password 98 creating 98 deleting 99 editing 99 password-protecting payslips 22 pay active pay 70 calculating default pays 69 calculating final pay 72 editing pay details 70 entering pays manually 70 finalising 80 processing 77 rounding 44 Pay Audit Trail 87 pay code description 33 length of code 33 Pay Code Totals report 87 pay codes Accumulators tab 39 add to all employees 33 adding 32 default pay codes 32 editing 34 employee cost analysis split 47 Employer Super tab 36 General tab 35 maintaining 32 Other tab 37 Time Off In Lieu 61 Totals tab 40 types 33 pay frequency employee details 44 pay slip password-protecting 22 pay slips adding a common message 74 printing 74 reprinting for prior pay 50 PAYE pay frequency 21 PAYE Calculator 103 PAYE period changing 81 paying employees direct credit details 23 payroll creating a blank payroll 19 creating using historical data 16 deleting a payroll 25 managing multiple payrolls 26 opening an existing payroll 25 payroll file adding a password 98 backing up 96 consolidating 102 INDEX 111

111 preparing to create 16 restoring from a backup 97 Payroll Selection window 25 Period Reports 88 preferences Accounting Integration 22 Contact Details 20 General Details 21 Leave Details 22 setting up initially 16 System Options 24 updating 20 Print Pay Slips overview 74 Print Timesheets overview 68 Process Pays command centre 77 processing pays required tasks 77 Purge Old Data 102 R radio buttons: definition 15 registration 9 Relevant Daily pay definition 63 diagram 59 reports overview 83 current pay details not included 86 detailed report descriptions 86 employee filter 84 Employer Superannuation report 89 page setup 85 Parental Leave Details report 89 Pay Summary 78 Payment Schedules 79 printer selection 85 printing options 84 summary of reports 85 to print when processing pays 78 when to print 85 resources example payroll 12 IRD publications 11 restorations definition 96 performing 97 restoring the payroll file 97 S salary entering an annual salary 45 Hours per Year setting 21 Standard Hours per Day setting 21 Sick Leave definition 63 Special Leave 63 Split Default button 47 split pay "Cannot change quantity of Split" message 70 types 48 Split pay types description of types 70 spreadsheet creating a spreadsheet of pay information 91 STC tax rate how to enter 45 superannuation Employer Superannuation report 89 overview 36 pay code details 36 T tabs: definition 15 tax code employee details 44 Special Tax Code (STC) tax rate, how to enter 45 Tax Override button 71 technical support, obtaining 9 Time Off In Lieu 61 Timesheets editing imported Timesheets 66 U entering manually 67 file format 66 importing 66 importing errors 66 printing 68 Timesheet entry options 67 unpaid leave managing 62 W Welcome to MYOB Payroll window 12 WINZ deductions 51 Z *.zip files INDEX